Introduction to Dual Pricing in Payment Processing

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The Unstoppable Pricing Trend
This article brought to you by iSmart Payments. If you would like to read the shorter version of this article it can be found here. In the context of payment processing, dual pricing refers to a pricing model where merchants offer customers two different price points for goods or services based on the payment method used.
One price is for payments made with a credit card, debit card, or other card-based transactions, and the other price is for payments made via cash. This practice is often seen as a way for merchants to offset the fees they incur when accepting card payments, which can range from 3% to 5% of the transaction amount.
iSmart Payments offers Edge 0% dual pricing processing to small business owners. It has become increasingly popular in many business types, from retail, to restaurants, to e-commerce and more. In this article will explore the concept of dual pricing, its advantages and how it works in practice within the payment processing ecosystem.
Dual Pricing Is Not A Surcharge
Dual Pricing is displaying both card and cash prices 4% appart to cover all processing fees.
Surcharge is adding on a fee let’s say 4% for credit card usage.
How Dual Pricing Works
Under a dual pricing system, a business receives two different prices for a product or service, one for card payments and one for cash payments. The rationale behind dual pricing is simple, credit card processing fees can be substantial. By offering a lower price to cash-paying customers, merchants can encourage more people to pay with cash, which incurs no processing fees.
Our Dejavoo dual pricing card machines automatically assumes the price of each non cash transaction 4%. EX: a $100 charge typed in will show up as $104. The customer is charged $104. Next morning $100 is deposited into your business checking account. Clean and simple.
- Cash Price: This price is offered to customers who pay with cash or other non-card payment methods. It reflects the merchantβs base price without the addition of any card transaction fees.
- Card Price: This price applies when customers pay using a credit card or debit card. The card price includes the additional fees that the merchant incurs for accepting card payments. These fees cover transaction costs, payment gateway fees, and other associated expenses.
Merchants set the card price higher to account for the fees they incur from payment processors. They often include interchange fees (paid to banks), processor fees and other related costs. The result is a situation where the cost of accepting card payments is passed on to the consumer, creating a financial incentive for customers to pay with cash.
Legal and Regulatory Considerations

Dual Pricing Processing
While dual pricing is legal in all 50 states in the U.S., there are several important regulatory and legal considerations that merchants must be aware of. These rules generally are showing transparency of the dual pricing structure to potential customers.
1. Free Speech / Freedom of Choice
On December 13th 2023 the New York Federal Courts (congruent with the First Amendment) sided with business owners saying, “the fees are actually protected under free speech as business had the right to tell customers what they are paying for. The result of this is dual pricing as its popularity has grown tremendously in the US.
Freedom of choice in consumer pricing in the US refers to the ability of consumers to make purchasing decisions based on the variety of options available. Each of them with different price points. This idea suggests that individuals should have the freedom to choose the products or services they want, at a price they are willing to pay.
2. Card Associationsβ Rules
In the past, credit card issuers such as Visa, impose surcharge rules on how merchants can structure their pricing. They historically required that merchants offer the same price regardless of the payment method. This rule applies to business who want to surcharge only and not dual pricing.
However with the growth of smartphones and being able receive proficient answer, many business found out that dual pricing has always been 100% legal. In the last 8 years a lot has changed especially in the US where the visibility of dual pricing is often seen at gas stations. Now small business are taking the same approach showing a card and cash pricing structure has become extremely popular and well accepted.
3. First Amendment Right
As mentioned earlier, dual pricing is legal in all 50 states. It’s a federally protected right under the First Amendment as it is protected as a form of commercial speech to advertise different prices for card and cash payment options. A quick web search search will reveal this is congruent as well.
Benefits of Dual Pricing Processing
There Are Many
For both merchants and consumers, dual pricing can have various benefits:
1. Cost Savings for Merchants
The primary benefit of dual pricing for merchants is the ability to pass on the processing fees associated with card payments to the customer. This can help businesses reduce the financial burden of accepting credit card payments, particularly for small businesses with lower profit margins. By implementing dual pricing, businesses can effectively keep their cash prices stable while accounting for the variable costs of card transactions.
2. Encourages Cash Transactions
Dual pricing can incentivize customers to pay with cash, which benefits merchants because cash transactions typically incur no processing fees. Encouraging more cash payments can help merchants improve their profit margins and avoid paying fees to payment processors. This can be particularly advantageous for businesses that operate in areas with higher-than-average credit card processing costs.
3. Increased Transparency
In some cases, dual pricing can lead to greater transparency for consumers. When merchants display both prices clearly, customers can make informed choices about how they wish to pay, based on the associated costs. This clarity can enhance the customer experience, as it empowers them to decide whether the convenience of card payments is worth the extra cost or if they prefer to pay with cash.
4. No Need for Surcharge on Credit Cards
In regions where it is not permissible to apply a direct surcharge on credit card transactions (such as the EU or certain states in the U.S.), dual pricing offers a way for merchants to pass on card processing fees indirectly. This is a way to avoid violating any rules against card surcharges while still accounting for the higher costs of credit card payments.

Customers Reaction To Dual Pricing Processing
In implementing a new payment system with a new pricing structure, business owners rightley are concerned of what customers reaction will be:
1. Customers Reaction
One of the most significant factors in using dual pricing from a antiquated single payment processing is the concern of pricing reception and pushback from customers. One of the biggest factors for being well recognized is dual pricing is seen at gas stations all over the country. It is now estimated that 25% of business have already implemented a dual pricing processing payment system.
2. Feedback From Customers
The answer to this is most, if not all customers really don’t care. In our very busy modern world, they are just glad to purchase what they came for and move on. Again, they have become so fillimilar with seeing the card and cash pricing structure somewhere else. So the filimaratey makes it easy to recognize and having the digital option to tap card or cash kinda makes it fun.
3. Feedback From Merchants
Implementing dual pricing processing can add some anxiety for merchants from an over thinking perspective. Let us explain. Over the years from putting on many merchants with dual pricing, we have noticed a lot of over thinking from business owners. They often assume they are going to get pushback for customers. However time has proven them wrong as their fears are unfounded. In the thousands of merchants we have set up with dual pricing, not one has switched back, not one.
4. Both Are Happy
This is a win-win situation for both customers and business owners alike. Win number one, the customer gets to choose card or cash pricing and save if paying with cash. Win number two, the merchant gets to save thousands in payment processing fees. Another plus is with our dual pricing, PCI fees are waved.
How To Get Started With Dual Pricing Processing
Below we will share how simple it is to get started and what to expect:
1. Click Get It Now
Below you will see a get it now button. It links to a secure portal with our payment processor North. There you will be prompted to create a login with your email address and a password to get started. Fill in the needed information like, business, address, contact information and where you want your funds deposited. If you have any questions during the process you are welcome to call or text us at anytime at: 801-205-1955.
2. iSmart Payments Will Be Notified
Here at iSmart Payments we will be notified right away or your request for our free Dejavoo dual pricing card processing machine. Real humans here at our office will take a quick glance to double check that everything looks good. Business owners really like that we offer what we call dual support. Not only from our processor at North, but also iSmart Payments. Someone that can be called and or text message at any time should the need ever arise.
2. FedEx Will Ship
Within two days your new Dejavoo dual pricing processing card machine will be delivered to the business address specified in the secure portal. Simple installation instructions will be in the package as well as a number you can call who can walk you through the process. You can also call or text us as well. You will also find enclosed dual pricing signage to notify customers as well.
Some Final Thoughts About Dual Pricing Processing

As you can see in the image from a Google search, dual pricing is 100% legal in all 50 states. iSmart Payments offers a free Dejavoo credit card machine that instantly populates card and cash pricing. This will save any business owner thousands in fees. All with next morning funding and no long contracts.
Congruent Reference Web Links

Get Set Up With Dual Pricing Processing
iSmart Payments will get your dual pricing payment processing account set up asap. Call or text me on my cell number below our 5 star reviews or just fill out the from. Looking forward to working with you, Greg.
