FAQs

Dual pricing is a strategy where businesses offer different prices for the same product or service depending on the payment method, typically a lower price for cash and a higher price for credit or debit card payments, to offset credit card processing fees. The primary goal of dual pricing is to reduce or eliminate the costs associated with accepting credit and debit cards, which can include processing fees that merchants pay to card networks.

Dual pricing is generally considered a legitimate and legal pricing strategy, as long as the displayed prices accurately reflect the cost of goods and services.

• Reduced Costs: Businesses can offset or eliminate credit card processing fees by encouraging cash payments.
• Increased Cash Flow: Dual pricing can lead to more cash transactions, improving cash flow and reducing reliance on credit card payments.
• Customer Choice: Customers have the option of choosing the payment method that best suits their needs and preferences.

Businesses implement dual pricing by displaying a lower “cash price” and a higher “card price” for their products or services. Customers can choose their preferred payment method, with cash paying customers receiving the discounted price. Businesses display two prices for the same product or service: one for cash and another for credit/debit card payments.