At Beacon Payments, we help merchants implement compliant, transparent programs like dual pricing to offset fees without alienating customers. In this post, we’ll explain how dual pricing works, why it’s legal, and how it can help your business eliminate credit card processing fees once and for all.

What Is Dual Pricing?

Dual pricing is a payment model where a business displays two prices:

• One price for cash payments
• One price for credit or debit card payments

Customers who choose to pay with cash receive a small discount, while those who pay with a card cover the cost of the processing fee. This setup allows businesses to remain transparent while recouping the costs associated with accepting card payments.

Unlike credit card surcharges (which are restricted or banned in some states), dual pricing is compliant and legal in all 50 states—when implemented correctly.

How Dual Pricing Eliminates Processing Fees

With dual pricing, your posted prices include the cost of credit card acceptance. When a customer pays with cash, you offer them a discount (typically around 3-4%). When they pay by card, they simply pay the listed price.

This means the processing fee is built into the sale, and you no longer have to absorb it. Over time, this can save your business thousands of dollars each year.

Example:

• Item price listed: $10.30 (includes processing cost)
• Customer pays with cash: $10.00
• Customer pays with card: $10.30
• Processing fee is covered either way.

Is Dual Pricing Legal?

Yes—when implemented properly. Dual pricing follows the same logic as gas stations that offer “cash” and “credit” prices. It is legal and card-brand compliant as long as:

• Prices are clearly displayed for both cash and card
• Receipts reflect the correct amounts
• Proper signage is posted at the point of sale

At Beacon Payments, we provide everything you need to stay compliant—from signage to pre-programmed terminals.

Benefits of Dual Pricing

✅ Eliminate Processing Fees

Save hundreds or thousands per month by passing fees to card-paying customers.

✅ Stay Competitive

You can keep your cash prices low and attractive—no need to raise prices across the board.

✅ Improve Cash Flow

More customers may choose to pay with cash, reducing chargebacks and lowering your daily fees.

✅ Full Transparency

Customers can choose how they pay and see the difference up front—no hidden fees or surprises.

Will It Upset Customers?

When done correctly, most customers are not surprised by the difference in price—especially as dual pricing becomes more common across industries.

Clear signage and a simple explanation are key:
"We offer a cash discount, so the listed price includes the processing cost. You can save a little by paying with cash, or pay the listed price with a card—it’s your choice!"

How to Set Up Dual Pricing with Beacon Payments

At Beacon Payments, we make it easy to implement dual pricing with:

• Pre-programmed terminals and POS systems
• Customizable signage
• Compliant receipt formatting
• No hidden fees or long-term contracts
• Ongoing support to help you stay compliant and successful

Whether you’re a retailer, restaurant, service provider, or mobile business, we have a solution that fits.

Final Thoughts

Credit card processing fees don’t have to be a cost of doing business. With dual pricing, you can eliminate those monthly expenses while staying compliant and giving your customers transparent choices.

Want to see if dual pricing is right for your business?
Contact Beacon Payments today for a free consultation and demo—start keeping more of your money, every month.