With credit card processing fees on the rise, business owners are looking for ways to protect their margins without raising prices across the board. Two of the most popular cost-saving options — dual pricing and surcharging — both help merchants offset processing costs, but they work very differently. Understanding how each model functions (and the compliance rules that come with them) will help you decide which one fits your business best.
What Is Dual Pricing?
Dual pricing is a transparent, customer-friendly model where two prices are displayed:
one for cash or debit payments and another for credit card payments.
Customers clearly see the difference and choose which payment method works best for them.
Example:
A product marked $20 cash price might cost $20.60 when paid by card. Both prices are displayed, so the customer knows exactly what they’ll pay.
✅ Advantages of Dual Pricing
- 100% legal in all 50 states
- No network registration required
- Fully compliant when the higher price is displayed clearly
- Positive customer experience since it feels like a reward for paying cash
- Eliminates or greatly reduces processing fees
🧩 Implementation Tip:
Always post and display the higher credit price (not the cash price) to maintain compliance and avoid confusion.
What Is Surcharging?
Surcharging adds a small percentage (usually up to 3%) to credit card transactions only — debit and prepaid cards are excluded by law and card brand rules.
Example:
A $100 transaction becomes $103 if paid by credit card, while cash and debit remain at $100.
✅ Advantages of Surcharging
- Passes credit card fees directly to customers
- Keeps your listed pricing structure simple
- Can be effective for B2B or higher-ticket merchants
⚠️ Important Considerations
- Not legal in all states
- Requires registration with card networks (Visa, Mastercard)
- Must include signage and receipt disclosure
Dual Pricing vs. Surcharging: A Quick Comparison
| Feature | Dual Pricing | Surcharging |
|---|---|---|
| Applies To | All payment types | Credit cards only |
| Legal In | All 50 states | Restricted in some states |
| Price Display | Both cash & card prices shown | One listed price + added fee |
| Setup Complexity | Simple | Requires network registration |
| Customer Reaction | Feels fair & transparent | May feel like a penalty |
| Ideal For | Retail, service, restaurants | B2B or higher-ticket businesses |
Why More Businesses Are Choosing Dual Pricing
At Beacon Payments, we’ve seen a major shift toward dual pricing because it offers the best of both worlds — complete compliance and zero confusion.
Your customers appreciate having a choice, and you keep more of every sale.
Our programs handle everything — signage, terminal setup, staff training, and receipt disclosures — so you can focus on running your business while saving thousands each year.
Final Thoughts
Both surcharging and dual pricing help merchants manage rising processing costs — but dual pricing stands out for its simplicity, legality, and customer satisfaction.
If you’re ready to start saving on fees while keeping your checkout process transparent and compliant, Beacon Payments can help you implement a dual pricing program that fits your business.