Pricing Model
Dual pricing displays two prices side by side — a cash price and a card price — so customers know the cost before choosing a payment method. It allows merchants to offset card processing costs without adding a surprise fee at checkout.
Last reviewed: July 4, 2026 · Editorial policy
Compliance note: Whether a particular dual-pricing program is permitted depends on applicable state law, card-network rules, and how prices are presented. Card networks (Visa, Mastercard) set specific display, disclosure, and surcharge requirements — and these can change. Always verify current requirements with your processor and consult qualified legal counsel before implementing any dual-pricing or surcharging program.
Quick Answer
Dual pricing shows customers two prices upfront — a cash price and a card price. The card price includes a built-in amount to offset processing costs. Both prices are displayed equally from the start, before payment method is selected. Whether it is permitted depends on applicable state law, card-network rules, and how the prices are presented. Card networks require specific signage, disclosures, and maximum amounts — verify current rules with your processor and legal counsel.
Under dual pricing, both prices are displayed simultaneously — for example, "$9.75 cash / $10.00 card" — before the customer selects a payment method. The customer sees both options and chooses. The merchant collects the card price when paid by card and the cash price when paid by cash.
The difference between the card price and cash price is designed to offset the merchant's card processing costs. Card networks have rules governing how large this difference can be (a maximum percentage surcharge cap applies for credit cards), how the prices must be displayed, and what disclosure language is required.
Dual pricing differs from surcharging in framing: in dual pricing, both prices are presented as equal alternatives from the start, with neither presented as a "base" price with an added fee. In surcharging, there is a stated base price and a separately disclosed fee added when a card is used.
| Model | How prices are displayed | Who pays the card cost |
|---|---|---|
| Dual Pricing | Two prices shown upfront simultaneously | Card-paying customers |
| Cash Discounting | Card is the posted price; cash customers get a discount | Card-paying customers (indirectly) |
| Surcharging | Base price + disclosed surcharge added at checkout | Card-paying customers (explicitly) |
Card network rules treat these models differently. Implementation requirements for each model vary — verify with your processor.
Educational content based on publicly available information. Not legal advice. Compliance requirements for surcharge and dual pricing programs are set by card networks and may change. Verify with your processor and consult legal counsel. Editorial policy.
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Verification note
Visa and Mastercard operating rules govern card-network display, disclosure, and surcharge requirements. They do not establish whether a dual-pricing program is permissible under applicable state law — state requirements vary and are a separate question. Dual pricing, surcharging, and cash discounting are distinct program types with different card-network treatment; they are not interchangeable. Debit-card surcharging is not permitted under Mastercard rules. Legal and card-network requirements may change. Merchants should verify current rules with their processor and qualified legal counsel before implementing a dual-pricing program.