How is Dual Pricing different from a Cash Discount?

While similar in intent, Dual Pricing and Cash Discount programs use different methods to help you offset processing fees. The key difference is that Dual Pricing shows both prices before the sale, offering greater transparency, while Cash Discount applies the discount at checkout.

Dual Pricing is more transparent. Two prices are clearly posted before the sale is completed: one for card payments and one for cash. The customer sees both options upfront and chooses how they’d like to pay. The higher card price includes the cost of processing, while the cash price does not.

In contrast, a Cash Discount program typically displays just one price, which includes the card fee. At checkout, customers who pay with cash or debit receive a discount. The difference is applied only at the time of payment, rather than being visibly posted beforehand.

Both methods aim to reduce or eliminate processing fees, but Dual Pricing may offer a more straightforward and compliant experience for merchants and customers alike.

Can I offer both Dual Pricing and Surcharge?

No, merchants can’t combine Dual Pricing and Surcharge programs. Each pricing strategy is structured differently and follows separate rules and compliance guidelines.

Attempting to implement both programs at once can create compliance issues, confuse customers, and may violate payment brand rules. You should choose one program based on your business needs and the legal allowances in your state.