How is Dual Pricing Different from a Cash Discount?

While both models aim to offset processing costs, they differ primarily in how prices are presented and how the transaction is calculated at the point of sale.

Dual pricing is a strategic approach where we enable your business to offer two distinct prices: a lower price for customers paying with cash and a higher price (which includes a card-present surcharge) for those paying with credit cards. This model creates a transparent structure where cardholders cover the associated processing expenses, such as interchange fees and card brand charges, through a specific line item on their receipt.

In contrast, a Cash Discount Program typically involves offering a discount off the standard posted price when a customer pays with cash. While both methods help manage thin margins in retail or restaurant environments, the key differences include:

• Transparency: Dual pricing provides clear line-item disclosures, ensuring customers see exactly why the total differs based on their payment method.
• Compliance: Both models require adherence to specific card network rules. With our dual pricing solutions, such as the Clover Flex Dual Package or Lavu Dual Pricing Integration, we ensure the software automatically calculates these amounts to maintain merchant surcharge compliance.
• Implementation: Dual pricing often uses specialized hardware or software configurations to show two prices simultaneously, whereas a cash discount focuses on a reduction from a single listed price.

We offer these solutions with competitive rates, no setup fees, and no cancellation fee. To see which model fits your business, you can contact us for a consultation, and you may even qualify for free Clover placements.

• Dual Pricing Merchant Services: 2026 Comparison Guide