Reduce or Eliminate Card Fees
Flexible options, clear pricing—shift costs or save, the choice is yours.
Quick Overview: Payment Options & Merchant Benefits
Dual Pricing:
Shows both cash and credit prices, empowering customer choice and reducing merchant costs.Surcharging:
Enables merchants to pass credit card fees to customers where legal, increasing savings.Convenience Fee:
Fixed fees for specific channels, designed for government, education, and utilities.Service Fee:
Compliant models that separate processing fees for regulated and public entities.Absorb Fee Model:
Traditional approach—merchant pays all processing fees for customer simplicity.- ACH & E-Check:
Low-cost, secure options that minimize processing expenses and support large or recurring payments.
- Apple Pay, Google Pay & Digital Wallets:
Accepts payments via Apple Pay, Google Pay, PayPal, and other digital wallets online or in person—fast, secure, and user-friendly for today’s consumers. - Contactless Payments:
Supports NFC and tap-to-pay, allowing safe, rapid in-person transactions with mobile devices and cards. - Omni-Channel Flexibility:
Unified reporting for in-person, online, mobile, and recurring payments—all in one platform. - PCI & Regulatory Compliance:
End-to-end security for every model, exceeding PCI DSS Level 1 standards and supporting complex compliance needs. - Custom Integration:
APIs, prebuilt plugins, and expert support for seamless deployments to any business or government environment.
IntelliPay Saves You Money
Eliminate unpredictable card processing costs and protect your margins with IntelliPay. Our flexible solutions—including dual pricing, surcharging, convenience fees, and traditional pay-all-fees programs—put you in control. You’ll benefit from transparent interchange-plus pricing, zero hidden fees, a wide range of payment options including digital wallets, superior reporting, and features customized for your business. Discover the right payment model to optimize your processing costs today.
Merchant Savings with IntelliPay Compared to Traditional Processing
Ever wonder how much card processing actually costs—and if you’re paying junk fees? With IntelliPay, you can use dual pricing, surcharging, or a convenience fee to shift card costs to customers.
Don’t want to shift processing costs to customers? You save too! With IntelliPay, you get true transparency and no hidden charges. We use real interchange plus pricing, so you always know exactly what you’re paying and why.
DUAL PRICING
Our Dual Pricing/Consumer Choice Program provides the best payment experience for your customers.
This program displays two prices before the consumer clicks the “Pay Now” button. There is a “Total Price with Card” that includes a processing fee, and a “Total Price with Cash/ACH” that does not include the processing fee. The consumer then chooses which payment method they’d like to use.
Dual Pricing is 100% compliant with Visa, Matercard, Disocver and American Express and complies with recent legislation requirements.
Does
- Provide transparent pricing, allowing consumers a choice in payment method
- Encourage the use of other lower-cost forms of payment
- Reduce overall processing costs
Does Not
- Add a ”surprise fee” right before checkout
- Allow merchants to charge more for credit card transactions than the actual cost of processing
FAQS
Will dual pricing impact my sales or customer satisfaction?
Dual pricing empowers customers with choice and transparency, reducing confusion about fees and often increasing acceptance of higher card processing costs.
Does dual pricing require changes to my current checkout process or software?
IntelliPay’s platform can integrate with many existing point-of-sale systems. Their team will help you determine if updates are needed for your business.
How does dual pricing work for customers?
Customers simply choose which payment method they prefer—if they pay by card, they pay the card price (including processing fees); if they pay by cash or ACH, they pay the lower price.
How will customers see the prices with dual pricing?
Before clicking “Pay Now,” customers are shown both the total price with card (including the processing fee) and with cash/ACH, so they choose the payment method that best suits them.
What are the benefits of dual pricing?
Dual pricing provides transparent pricing, lets customers choose their payment method, encourages the use of lower-cost payment options, and reduces your overall card processing costs.
Will customers see a surprise fee at checkout?
No, all prices and potential fees are shown before the customer pays so nothing is hidden or added at the last minute.
See our complete Dual Pricing FAQ here
SURCHARGING
Ever-increasing processing costs have led merchants to find ways to lower their expenses.
One option a growing number of merchants are evaluating is to shift some or all these costs back to consumers who choose to use credit cards. Surcharging refers to adding a small fee to credit card purchases to help offset the cost of accepting those payments.
As of 2025, surcharging remains prohibited in Connecticut, Maine, Massachusetts, and California. Puerto Rico also bans the practice. Other states enforce specific limits or disclosure requirements, including caps tied to the merchant’s actual cost of acceptance. Check out details for every state in our updated state-by-state surcharging guide here.
Before implementing a surcharge program, merchants should consult with legal counsel to ensure full compliance with applicable state laws and payment network rules.
Does
- Surcharging can add up to 3% for Visa credit cards or 4% for Mastercard credit cards (or your actual processing cost, whichever is lower) when someone uses their credit card.
Does Not
- Surcharging doesn’t add the fee when someone uses their debit card that’s tied to a bank account (no rewards).
FAQs
Is surcharging legal in all states?
No. Surcharging is prohibited in Connecticut, Maine, Massachusetts, California, and Puerto Rico, and some other states have specific limits or disclosure rules tied to actual processing costs—always check your local laws before implementing.
Can I surcharge debit or prepaid card transactions?
No. Card network rules prohibit merchants from adding surcharges to debit or prepaid card transactions, regardless of whether they are run as credit or debit.
How does IntelliPay ensure my surcharge program is compliant?
IntelliPay’s surcharging program aligns with state laws and card brand requirements, and the team recommends consulting legal counsel to ensure full compliance in your area.
How are surcharge fees calculated and applied at checkout?
Surcharges can typically only be added to credit card transactions and must not exceed the merchant’s actual cost to accept those cards, up to network-mandated caps—IntelliPay’s system calculates and applies these fees automatically.
See our Complete Surcharging FAQ here
CONVENIENCE FEE
Our Convenience is ideal for merchants that want to offset their merchant processing fees.
Our solution is 100% compatible with Visa/MC Convenience Fee Processing program.
With Convenience Fee Model merchants charge a flat fee for the privilege of paying for a product or service using an alternative payment channel or a payment method that is not standard for the merchant. For example, theatres are selling tickets online versus in their lobby.
Does
- Support all credit and debit cards
- Add a flat fee to the amount due
- Combine the fee and the amount due into one payment
- Apply to online, pay-by-phone, and other digital (card not present) transactions
- Deposit invoice amount into your account
- Reduce merchants processing costs
- Require merchant to offer an option that does not charge a fee
Does Not
- Apply to in-person (card present) transactions
- Separate amount due and fee
- Permit a fee that is a percentage of the transaction
- Get charged in addition to a surcharge
- Apply to recurring transactions
FAQs
When can I charge a convenience fee?
Convenience fees can only be charged when the payment is made through a non-standard channel for your business (e.g., online or by phone for a business that usually accepts payments in person).
Are convenience fees charged on recurring transactions?
No, convenience fees cannot be applied to recurring transactions.
Does charging a convenience fee increase my processing costs?
No, using our convenience fee model helps reduce your merchant processing costs by offsetting the fees.
Is the convenience fee mandatory for customers?
Merchants must provide an option that does not charge a convenience fee, so customers can choose another payment method if they prefer.
Can a convenience fee be charged in addition to a surcharge?
No, convenience fees cannot be charged alongside a surcharge on the same transaction.
See our complete Convenience Fee FAQ here
SERVICE FEE
An alternative fee-based program for Government, Higher Education institutions, and Utilities (as of 10/18/25) enables these organizations to charge a fixed or variable fee on all online or in-person credit or debit transactions.
Your organization gets the invoice amount due, and IntelliPay collects the service fee, pays the processing costs, and manages the merchant account for you.
Does
- Add a fee to the amount due
- Deposits invoice amount into your account
- Deposits the fee into IntelliPay's account
- Displays the fee before payment
Does Not
- Bill you for transaction costs
- Interfere with compliance rules
- Require registration with Visa
- Apply outside a specific set of merchant category codes -
- 4900 (Utilities – Electric, Gas, Water, Sanitary) 10/18/25
- 8211 (Elementary and Secondary Schools)
- 8220 (Colleges, Universities, Professional Schools, and Junior Colleges)
- 8244 (Business and Secretarial Schools)
- 8249 (Vocational and Trade Schools)
- 9211 (Court Costs, Including Alimony and Child Support)
- 9222 (Fines)
- 9311 (Tax Payments)
- 9399 (Government Services [Not Elsewhere Classified])
FAQs
How does the service fee process work?
Your organization receives the invoice amount due, while IntelliPay collects the service fee, covers processing costs, and manages the merchant account for you.
Is the service fee added to the payment amount?
Yes, the service fee is combined with the invoice amount so customers see one total payment before completing the transaction.
Will my organization receive the service fee amount?
No, the fee amount is deposited directly into IntelliPay’s account, while your organization receives only the invoice amount you billed.
Are service fees displayed before payment?
Yes, the service fee is always shown to customers before they pay, ensuring complete transparency.
Will my organization be billed for transaction or processing costs?
No, IntelliPay covers all transaction and processing costs related to card payments, so your organization is not billed for these expenses.
See our complete Service Fee FAQs here
Please contact a consultant to learn how IntelliPay has been helping governments, higher education institutions, and utilities of all sizes save time and money since 2004. We also offer fee-based alternatives for merchants with non-qualifying transactions.
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The Right Solution for My Business
Choosing a payment program shouldn’t be hard. Compare your options in this chart. Still have questions? Check out the links below or talk to with us. There’s no-obligation, and we’re here to help you find the best fit for your organization, every time.
Discover more here:
How to Lower Credit Processing Fees and Improve Margins
Passing Credit Card Fees Onto Customers
Choose the Right Provider
Since 2011, IntelliPay has been the trusted payment partner for thousands of organizations nationwide, across public and private sectors. We hold PCI DSS Level 1 certification—the highest standard for secure payment processing—and handle billions of dollars in payments annually. Choose IntelliPay for:
Comprehensive payment options including credit, debit, Apple Pay, digital wallets, and ACH/eCheck
Robust security and advanced fraud prevention technologies
Over 70 years of combined payments industry experience among our team
Transparent, straightforward pricing with no hidden fees
Seamless integration and dedicated customer support
With IntelliPay, you get a trusted, compliant, and innovative partner dedicated to optimizing your payment processing and reducing costs.
Payment Models FAQs
Q. Is Dual Pricing and Cash Discounting the same thing?
A.
- Dual Pricing and Cash Discounting are related but not the same thing. Both help merchants offset credit card processing fees and encourage customers to pay with cash, but they operate differently and have distinct compliance requirements.
Key differences:
- Dual pricing presents two prices at the point of sale—one for cash, one for card—so customers can easily see the cost difference and choose their preferred payment method.
- Cash discounting posts a single price (usually the card price) and then subtracts a discount if the customer pays with cash.
Dual pricing differentiates prices based on payment methods, while a cash discount reduces the price for those who pay with cash. … Dual Pricing allows customers to choose their payment method freely, offering savings on processing fees when paying with cash. In contrast, Cash Discount pricing directly incentivizes cash payments by lowering the list price.
Q. What is the difference between dual pricing and surcharging?
A. Dual pricing is a transparent, compliant way to present two payment options, while surcharging adds a fee to card transactions after the fact and is more tightly regulated.
- Dual pricing is about offering a choice: the customer picks cash or card, each with its own clearly posted price. It is transparent and generally well-received, as it feels like a reward for cash payments.
- Surcharging adds a fee to the end of the transaction only if the customer chooses to pay by credit card, making the fee a surprise and the card payment more expensive than the posted price. This is often perceived as a surprise fee and is subject to more legal restrictions and disclosure requirements
Q. Is this the same as the "convenience fee" we've heard about for government?
A. Visa Service Fees are more flexible in structure (can be percentage-based) but more restricted in who can use them (only government/education), while Convenience Fees are more widely available but must follow stricter rules about being flat fees and apply equally to all payment methods.
- Service Fee: For certain government/education MIDs, can be percentage or flat, processed by TPP, no alternative payment required.
- Convenience Fee: For any merchant, must be flat, processed by merchant, must offer a no-fee alternative payment method.
Q. How does IntelliPay help businesses save money on payment processing?
A. IntelliPay helps businesses save money on payment processing use fee-based payment models.
We offer options like dual pricing, surcharging, service fees, and convenience fees that allow businesses to pass some or all credit card processing costs to customers. This means merchants can reduce or even eliminate the fees they would otherwise pay, especially on high-cost rewards cards.
Q, Is surcharging legal in my state?
A. As of July 2025, credit card surcharging is legal in most U.S. states and territories, but there are important exceptions and limitations. Here’s a detailed breakdown based on the latest available information:
States Where Credit Card Surcharging Is PROHIBITED:
- Connecticut
- Maine
- Massachusetts
- California (effective July 1, 2024)
Special Cases and Restrictions
Colorado: Surcharging allowed but capped at 2%.
New York, New Jersey, Nevada, South Dakota: Surcharges cannot exceed the actual cost the merchant pays to accept the card.
Minnesota: Surcharging is legal, but as of January 1, 2025, mandatory fees must be included in the advertised price unless avoidable by the consumer.
Q. What do I need to do to get started with Dual Pricing?
A.To get started with Dual Pricing please read our The Complete Guide to Dual Pricing or contact an IntelliPay expert for help.
Q. What is a convenience fee?
A. A convenience fee is a small, flat fee that a business charges when a customer chooses to pay using a method that’s not the business’ standard way of accepting payments. For example, if a business usually takes payments in person, but have customer who want to pay online or over the phone, they might add a convenience fee for the “convenience” of using that alternative channel.
So, in short, a convenience fee is what you pay for the flexibility of choosing a different way to pay, and it helps businesses cover some of the costs that come with offering those extra payment option.
Q. What government entities and Higher Education Institutions can charge service fees?
A. O only specific government entities and higher education institutions with certain Merchant Category Codes (MCCs)
Eligible Government Entities, those processing payments under these MCCs:
MCC 9311: Tax payments
MCC 9222: Fines
MCC 9211: Court costs
MCC 9399: Miscellaneous government services
Eligible Higher Education Institutions, those processing payments under these MCCs:
MCC 8211: Elementary/Secondary Schools
MCC 8220: Colleges, Universities, Professional Schools, Junior Colleges
MCC 8244: Business Schools
MCC 8249: Trade Schools
Q. How does the convenience fee model work?
A. With IntelliPay’s convenience fee model, a merchant charges a flat fee for the privilege of paying for a product or service using an alternative payment channel or a payment method that isn’t standard for the merchant. For example, a theater may charge a convenience fee for tickets purchased online rather than at the box office. This model is compatible with Visa and Mastercard’s convenience fee processing rules.
Q. How does IntelliPay’s service fee program work for government and higher education?
A. Eligible organizations can charge a fixed or variable service fee on all online or in-person credit or debit transactions. IntelliPay collects the service fee, pays the processing costs, and manages the merchant account, so the organization receives the full invoice amount due.
Q. Can merchants eliminate all payment processing costs with IntelliPay?
A. Yes, by using consumer fee-based options like surcharging, convenience fees, or service fees (for eligible entities), merchants can reduce or even eliminate processing costs. IntelliPay also helps by eliminating unnecessary or junk fees.
Q. What is the traditional payment processing or absorb fee model?
A. In the traditional model, the merchant pays all interchange, dues, assessments, PCI, and gateway fees on all online and in-person transactions. This is the standard way most merchants accept payments today.