Dual pricing shows customers two prices, a cash price and a slightly higher card price, so customers who pay by card cover the processing cost. It differs from surcharging, which adds a fee on top of one price, and from a cash discount, which takes money off one price. All three can cut a business's processing fees by most of their cost; which one fits depends on your state's rules and how you sell.
Key takeaways
- Dual pricing lists a cash price and a card price side by side, before the customer pays.
- Surcharging adds a fee to card payments; a cash discount subtracts from the listed price for other payments.
- Dual pricing is often the go-to where surcharges are banned or restricted, such as California.
- One published case cut monthly fees from $3,713 to $91.42 with dual pricing built into existing invoices.
Dual pricing vs. surcharging vs. cash discounts
| Dual pricing | Surcharging | Cash discount | |
|---|---|---|---|
| What the customer sees | Two prices: cash and card | One price, plus a card fee at checkout | One price, minus a discount for cash or other payment |
| Debit cards | Usually the cash price | Can't be surcharged | Depends on the program |
| Card network cap | Set by the program's pricing | Visa 3%; never above your cost | Set by the program's pricing |
| Where it's often used | States that restrict surcharges; invoices | Most states with clear rules | Counter sales, service businesses |
| Typical fee reduction | Most of your processing cost, depending on how many customers pay by credit card | ||
How dual pricing works
- Your processor sets up the program and your terminal, payment page or invoicing software.
- Every price shows both amounts, for example "Cash $1,000 · Card $1,035," on the invoice, menu, sign or screen.
- The customer chooses how to pay, and the system charges the matching price.
- Your deposit covers the full cash price either way.
A real example: $3,713 a month down to $91
In a case published by our processing partner, an event and trade-show services company had absorbed every card fee as a business expense, and the fees had grown to $3,713 a month. The owner didn't want to change how the team invoiced from its accounting software.
The solution was dual pricing delivered through a secure payment link inside each existing invoice. Monthly fees dropped to $91.42, about $43,462 saved a year and roughly $130,000 projected over three years. Customers kept paying by card, even on large invoices.
Individual results vary with your card volume, card mix and current pricing.
Which one should you choose?
- Choose dual pricing if you send invoices or quotes, sell high-ticket jobs, or operate where surcharges are restricted.
- Choose surcharging if your state allows it and you want to keep one listed price.
- Choose a cash discount if you sell over the counter and want to reward customers who pay by cash or debit.
Not sure? Check the credit card surcharge laws by state, then send a statement for a free review and we'll price each option for your business.
Frequently asked questions
What is dual pricing?
Is dual pricing legal?
Is dual pricing the same as surcharging?
Do debit cards get the cash price?
Will customers stop paying by card?
This article is general information, not legal, tax or financial advice. Card network rules and state laws change; confirm the rules for your business before changing how you charge customers.