Cash Discounting-Dual Pricing-Surcharging
There are three common ways to handle card processing costs. This page explains the differences, who each method fits best, and what you must do to stay compliant with card brand and state rules.
✅ Pricing Transparency
✅ Card Brand Compliance
Quick Definitions
Dual Pricing
You display two prices everywhere: a card price and a cash price. Customers choose how to pay. The card price already includes your cost of acceptance—no extra fee line is added at checkout.
Cash Discounting
You display only the card price and offer a discount for paying with cash or equivalent (ACH, check). The discount is shown as a reduction—not an added fee.
Surcharging
You add a clearly disclosed fee on credit card transactions to recover processing costs. Never applied to debit or prepaid cards. Caps and disclosures apply.
How Each Method Looks (Examples)
Dual Pricing
Golf Polo — Card: $103.00 • Cash/ACH: $100.00
Shelf tag and menu show two prices. Receipt shows only the price the customer chose—no extra fee line is added.
Cash Discount
Subtotal $103.00 → Cash Discount −$3.00 → Total $100.00
Display the standard (card) price, then subtract the discount when tender is cash/ACH.
Surcharge (Credit Only)
Subtotal $100.00 → Credit Card Fee +$3.00 → Total $103.00
Disclosure at entry and checkout. The fee appears as a separate line on the receipt.
At‑a‑Glance Comparison
| Method | What the customer sees | Where it fits | Compliance keys |
|---|---|---|---|
| Dual Pricing | Both Card and Cash prices shown on menus, shelf tags, invoices, website. | Retail, restaurants, clubs, service providers—great for signage‑friendly environments. | Display both prices (or card price only + clear cash discount). Receipts should reflect the final chosen price—not an added fee line. |
| Cash Discount | Standard (card) price with a visible discount for cash/ACH at checkout or on invoice. | Counter service, invoicing, B2B/field services using ACH. | Position as a discount from the posted price. Avoid language that looks like a surcharge. |
| Surcharge (Credit Only) | A separate Credit Card Fee line item appears on credit transactions. | E‑commerce, professional services, and B2B where line‑item fees are normal. | Never on debit/prepaid. Follow card‑brand caps, required signage, receipt line item, and any state‑specific limits. |
Compliance Essentials (Plain‑English)
Always
- Be transparent: post required notices at the door/checkout and online.
- Train staff on simple scripts (see below) and what counts as cash equivalent (e.g., ACH).
- Make receipts match the presentation (discount vs. surcharge).
Never
- Apply fees to debit or prepaid—even if a customer chooses “credit.”
- Exceed network/state caps or charge more than your cost of acceptance.
- Hide fees in fine print or surprise customers at payment.
Watch‑outs (State & Network)
- Some states cap or condition surcharging (e.g., display card‑inclusive price, or 2% cap).
- Visa/Mastercard publish specific caps and signage/receipt rules.
- Rules evolve—review annually and when you add new locations.
FAQs
Is surcharging legal?
In many states yes, with limits. Some states ban or cap surcharges or require posting the card‑inclusive price. Card networks also cap and condition surcharges. We’ll configure to your location.
Can I add the fee to debit cards?
No. Surcharges apply to credit cards only. Debit and prepaid are excluded—even when “run as credit.” Dual pricing/cash discounting can still show two prices while treating debit as card.
What are typical surcharge or price‑difference amounts?
Most merchants recover 1.5%–3% of the ticket on credit transactions. Exact limits depend on card‑brand rules and your state. We’ll align with the lesser of your cost or allowed cap.
Does dual pricing work online?
Yes. For web checkout, we usually implement a credit‑only surcharge and show pre‑tax and total amounts transparently, while excluding debit automatically.
What should my receipts say?
Dual pricing/cash discount: show the final chosen price (and an optional “Cash Discount” line if you showed the standard card price). Surcharge: show a separate “Credit Card Fee” line item on credit transactions.
Set Up With Selective Pay (Step‑by‑Step)
- Pick your approach — Dual Pricing, Cash Discount, or Surcharge (credit only).
- Choose the rate — based on your cost of acceptance and applicable caps.
- Configure tech — terminals (Ingenico, PAX, Clover), gateways (NMI), and e‑commerce. We enable card‑type detection, debit exclusion, brand/product‑level settings, and compliant receipt lines.
- Signage & receipts — we provide entry/counter signs, menu tags, and receipt wording that matches your program.
- Train staff — 60‑second huddle + quick reference card.
- Monitor — quarterly spot‑checks; update if laws or brand rules change.
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