Many small businesses want to stop absorbing card fees. Two programs are common, and they are not the same thing.
Dual pricing (cash discount)
You show two prices: a card price and a slightly lower cash price. The customer chooses how to pay. The difference is presented as a discount for paying cash.
- Works on credit and debit cards.
- Needs clear signage and both prices on receipts.
- Popular with restaurants, auto shops, salons and retail.
Surcharging
You add a fee on top of the price when a customer pays by credit card.
- Never allowed on debit cards, even when run as credit.
- Capped by card-network rules and requires disclosure at the entrance, at checkout and on the receipt.
- Restricted or limited in some states.
Which is right for you?
- If many customers pay with debit, dual pricing usually covers more transactions.
- If you sell online or invoice B2B customers, surcharging on credit is often simpler.
- If you are in a state that restricts surcharging, dual pricing may be the practical route.
Getting it right matters
Both programs have signage and receipt rules. Done wrong, they create complaints and disputes. Done right, customers rarely notice.
Not sure which fits? Tell us how you sell and we will explain the options — voxepay.co.