What Is Dual Pricing or Cash Discounting?

Dual pricing (also called cash discounting) is a pricing strategy that gives customers a choice:

• Pay with cash or debit and receive a discount.

• Pay with credit card and cover the processing fee.

Instead of the business absorbing rising credit card processing costs, the expense is passed to customers who choose to pay with credit. Those who pay with cash or debit enjoy a lower price.

Why It Matters for Small and Medium Businesses

• Reduce or eliminate processing fees – Keep more of your hard-earned revenue.

• Offer customers flexibility – Let them choose how they want to pay.

• Stay compliant – Dual pricing programs are designed to meet state and card-brand rules.

• Boost profitability – Stop losing margins to credit card fees.

In short:

Dual pricing puts you back in control of your payment costs, rewarding customers who pay with cash while ensuring credit card users cover the expense of convenience.