Dual Pricing

What is it?

The pricing model allows the merchant to receive the same profit margin as cash payments by adjusting the cost of goods/ services to reflect a percentage increase, assuming the customer is paying by card. Customers receive discounts if they pay by cash or any other acceptable non-card payment type.

Is there a cap?

Yes. The percentage increase to cardholders can be no higher than 4%. Additionally, per card brand regulations, the merchant cannot assess a surcharge higher than their credit card processing cost.

How does pricing work?

All card types are priced at the same flat rate. A rate is passed on to the cardholder, and an offset flat rate is assigned to the merchant. Note that debit cards, including PIN, cannot be priced separately.

Is the program legal in all 50 states?

Yes.

Is card brand registration required?

No.

Which card types does each program apply to?

A dual pricing program applies to all card types except for EBT. This includes credit, offline and PIN debit.

Does the program need to be disclosed to the customer?

There are a couple ways the merchant can advertise their pricing:

• If the card price/highest price is advertised, then no other disclosure is required of the cardholder

• A merchant can post both the card and cash price, but only the card price 
 is required

• No signage should be posted for dual pricing.