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Dual Pricing FAQs

General Questions

Q. Who typically uses dual pricing?

A. Who typically uses dual pricing?

Common business types:

  • Retail stores (gas stations, convenience stores, boutiques)
  • Restaurants (from quick-service to fine dining)
  • Professional services (lawyers, accountants, consultants)
  • Contractors and tradespeople
  • Medical and dental practices
  • Any business operating on thin margins

Why it’s popular: Works for any business type, any size, anywhere in the U.S.

Questions? Talk to one of our experts.

Q. What's a real-world example of dual pricing?

A. Gas Station Example:

  • Sign shows: “Regular $3.49/gal (Cash: $3.39/gal)”
  • Customer pumps gas and chooses payment method
  • Pay with card: $3.49/gallon
  • Pay with cash: $3.39/gallon
  • No surprise – customer knew both prices before pumping
Q. How is dual pricing different from a "cash discount"?

A. Dual pricing and cash discount programs both encourage non-card payments, but they are not exactly the same: dual pricing clearly displays two prices (cash and card) up front, while cash discounting typically applies a discount from the posted card price only at checkout. Card brands prefer the transparency of dual pricing for compliance.

To learn more or get your questions answered, talk to one of our experts.

Q. Why would customers choose to pay more with a card?

A. Why would customers choose to pay more with a card?

Common reasons:

  • Convenience (don’t have to carry/get cash)
  • Rewards points on their credit card
  • Better purchase tracking for budgeting
  • Building credit history
  • Buyer protections
  • Prefer not to visit ATM

About 70-75% of customers still choose cards even with dual pricing because the benefits outweigh the small cost difference

To learn more or get your questions answered, talk to one of our experts.

Q, Won't I lose sales if I implement dual pricing?

A. Real-world data says no:

  • Most businesses see stable or increased revenue
  • Some customers switch to cash (saving you money)
  • Others continue using cards (expecting it)
  • Price-conscious customers appreciate the cash option
  • Transparency often improves customer trust

What causes sales loss: Surprise fees at checkout, poor communication, or inconsistent implementation. Done right, dual pricing doesn’t hurt sales.

To learn more or get your questions answered, talk to one of our experts.

Q. How do I explain dual pricing to customers who ask?

A. Keep it simple:

“We offer two prices to give you a choice. Our card price includes the cost of processing cards, which has gotten really expensive. If you pay with cash or ACH, you save [X%]. Either way works for us – whatever is most convenient for you.”

Focus on:

  • Customer choice
  • Transparency
  • Savings opportunity
  • Their convenience

Avoid:

  • Complaining about card companies
  • Making customers feel bad for using cards
  • Excessive explanation of your costs

To learn more or get your questions answered, talk to one of our experts.

Q. Can I use dual pricing in only some of my locations?

A.  Can I use dual pricing in only some of my locations?

Technically yes, but not recommended.

Problems with partial implementation:

  • Customer confusion across locations
  • Inconsistent brand experience
  • Harder to train staff
  • Complicated compliance tracking

Better approach: Implement consistently across all locations or test thoroughly at one location before expanding

To learn more or get your questions answered, talk to one of our experts.

Q. What if I have both online and in-person sales?

A. Dual pricing works for both, but implementation differs:

In-person:

  • Display both prices on menus/price tags
  • Show on POS screen
  • Apply discount automatically

Online:

  • Show both prices on product pages
  • Display at checkout
  • Apply discount based on payment method selection

The key is consistency – customers should see the same pricing structure whether they shop online or in-store.

To learn more or get your questions answered, talk to one of our experts.

Q. How does dual pricing affect my profit margins?

A. Typical impact:

Before dual pricing:

  • Revenue: $100,000
  • Processing fees: $3,000 (3%)
  • Net: $97,000

After dual pricing (assuming 25% switch to cash):

  • Card sales: $75,000 with 3% fees = $2,250
  • Cash sales: $25,000 with 0% fees = $0
  • Total fees: $2,250
  • Savings: $750/month or $9,000/year

Your actual savings depend on your transaction mix and how many customers choose cash.

To learn more or get your questions answered, talk to one of our experts.

Q. Do I need different equipment for cash vs. card sales?

A. No special equipment needed. Your POS system handles both:

  • Displays both prices
  • Applies cash discount automatically when selected
  • Accepts card payments normally
  • Handles cash drawer as usual

Most modern systems including IntelliPay support dual pricing with simple configuration.

To learn more or get your questions answered, talk to one of our experts.

Q. Can I still offer my loyalty program with dual pricing?

A. Yes. Best practices:

  • Award loyalty points based on pre-discount amount (the actual product value)
  • This way, cash and card customers earn the same rewards
  • Prevents confusion or feeling penalized for payment choice

Your POS system can be programmed to calculate loyalty rewards correctly regardless of payment method.

To learn more or get your questions answered, talk to one of our experts.

Legal & Card Brand Considerations

Q. Is dual pricing legal everywhere?

A. Yes.Dual pricing programs are generally permitted in all 50 states when properly implemented. 

Dual pricing is a compliant pricing strategy because it is structured as a discount for paying with cash, not a fee for using a credit card.

  • The Key Difference: The legal price you advertise must be the higher (card) price, and the lower (cash) price is presented as a savings or discount.
  • Surcharges vs. Dual Pricing: This method avoids the issues of surcharges (an extra percentage fee added at checkout), which are banned in a few states (e.g., Connecticut, Maine, Massachusetts) and heavily restricted in others (e.g., New York).
  • Compliance: To stay legal, you must clearly and conspicuously display both the card and cash prices upfront.

However, compliance requires careful attention to state price transparency laws, card network rules, proper signage, and accurate fee calculations. We recommend consulting with legal counsel familiar with your state’s specific requirements before implementation.”

Want to know more about how dual pricing differs from surcharging? Visit intellipay.com/surcharging-vs-cash-discounting

Q. What about states with new pricing disclosure laws?

A. States like Virginia now require clear display of total prices. When implementing dual pricing in compliance with these laws:

  • Both prices (card price and cash price) must be clearly displayed before purchase
  • The card price reflects the base price plus payment processing costs
  • Customers paying with cash/ACH receive a discount from the card price
  • All pricing must be transparent and consistently applied

Important: Price transparency requirements vary by state and locality. Some jurisdictions have specific rules about how prices must be displayed, the size of signage, and disclosure language. Always consult with legal counsel familiar with your state and local requirements before implementing dual pricing.”

Q. Is dual pricing the same as cash discounting?

A.Dual pricing and cash discount programs both encourage non-card payments, but they are not exactly the same: dual pricing clearly displays two prices (cash and card) up front, while cash discounting typically applies a discount from the posted card price only at checkout. Card brands prefer the transparency of dual pricing for compliance.

Q. Are there any geographic restrictions?

A. No. Unlike surcharging which faces restrictions in Connecticut, Maine, Massachusetts, California, and Puerto Rico, dual pricing works in all of these locations without issue

Other Requirements

Q. What do I need to display?

A.  You have two compliant options:

Option 1: Show both prices
“$10.00 (card) / $9.70 (cash)”

Option 2: Show card price with cash discount notice
“$10.00 – Save 3% with cash/ACH”

Critical rule: The card price must always be your advertised price. The cash price is presented as a discount

Q. Where do I need to show prices?

A. Everywhere customers see pricing:

  • Entrance signage
  • Price tags or menus
  • Your website
  • Checkout screens
  • Receipts (showing both prices and discount applied)

Consistency is key—customers should see the same pricing structure at every touchpoint.

Q. How much can the difference be between prices?

A. The difference should reflect your actual processing costs, typically 2.5-4%. Keep it reasonable and honest—you’re not trying to profit from the pricing structure, just recover your processing costs.

Does my POS system need special features?

Yes. Your point-of-sale system needs to:

  • Display both prices clearly
  • Automatically apply the cash discount when selected
  • Print compliant receipts
  • Calculate the difference correctly every time

Modern systems like Square, Clover, and Toast support dual pricing. IntelliPay integrates with these and configures everything correctly.

Q. Can I use dual pricing online?

A. Yes.Show both prices on product pages and at checkout, then automatically apply the discount based on payment method selection. It requires proper payment gateway setup, but it’s definitely doable.

Q. Do I need to train my staff?

A. Absolutely. Staff should be able to explain it simply:

“We offer two prices—you save [amount] by paying with cash or ACH, or you can use your card at the listed price. Either way works!”

Keep it positive and focused on customer choice, not processing costs.

Practical Questions

Q. Will customers understand dual pricing?

A.  Most customers get it immediately when it’s presented clearly:

  • They see two prices
  • They understand one saves money
  • They choose their preferred payment method

About 73% of customers appreciate having the choice, according to industry research.

Questions? Please reach out to one of our consultants.

Q. Won't card users feel penalized?

A. Not when done right. The psychology matters:

  • The card price was always the displayed price (no surprise)
  • They’re not watching a fee get added at checkout
  • They chose to use their card knowing the two options
  • Many prefer card convenience even at slightly higher cost
Q, How much will my business actually save?

A. Typical savings: 2-4% of total revenue

Real numbers for small businesses: $200 to $2,000 per month

What drives savings:

  • Reduced processing fees on card transactions
  • 20-30% of customers switching to cash/ACH

Your actual savings depend on your transaction volume and how many customers choose cash.

Q. Do customers really switch to cash?

A. Yes. Real-world data shows 20-30% of customers switch to cash or ACH when they see the savings, especially for:

  • Larger purchases (where dollar savings is more noticeable)
  • Regular customers (who get comfortable with the option)
  • Price-conscious shoppers
Q. How quickly can I implement dual pricing?

A. 

Timeline: Typically 3-4 weeks

What happens:

  • Week 1-2: System setup and configuration
  • Week 2-3: Signage creation and staff training
  • Week 3-4: Testing and soft launch
  • Ongoing: Optimization based on results

Some businesses start with one location or product line to test before full rollout.

Q. Can I use dual pricing for online subscriptions?

A.  Yes. Customers see both pricing options when they sign up and choose their payment method. Some businesses offer discounts for annual cash payments versus monthly card payments.

Q. What if I operate in multiple states?

A.  No problem.Since dual pricing is legal in all 50 states, you can use the same program across all your locations. This actually makes it simpler than other fee programs that have geographic restrictions.

Q. How do refunds work with dual pricing?

A. Refund what the customer paid:

  • If they paid the card price, refund the card price
  • If they paid the cash price, refund the cash price

Your payment system handles the details automatically

Q. What about tips in restaurants?

A.Calculate tips on the base amount before any card fee is added. Restaurant-specific systems like Toast have this logic built in, so servers and customers don’t have to think about it.

Q. Will this hurt my competitive position?

A. Many businesses find it actually helps:

  • You can advertise lower cash prices than competitors
  • Or maintain same card prices while improving margins
  • Some customers specifically seek out businesses offering payment choice