How to Stay Compliant with Dual Pricing: What Every Merchant Must Know
Dual pricing—also known as Cash discounting—has become a powerful way for merchants to eliminate credit card fees and boost profits. But with great opportunity comes great responsibility. The program is 100% legal, but it must be implemented correctly to remain compliant with card brand rules (Visa, Mastercard, etc.) and federal/state regulations. If you cut corners or don’t follow the rules, it could cost you.
Here’s what you need to know to stay compliant—and avoid costly fines or account shutdowns.
Dual Pricing (a.k.a. Cash Discounting) allows you to offer two prices:
- A lower price for customers who pay with cash
- A higher price for those who use a credit or debit card, which covers your processing costs
It’s not a “surcharge.” It’s a transparent pricing model where customers can choose how they want to pay, knowing exactly what they’ll be charged either way.
To stay compliant with Visa, Mastercard, and federal regulations, you must meet the following criteria:
- Clearly Display Pricing Options
You must clearly post signage at the entrance. Here are some examples.
AS AN INCENTIVE FOR CUSTOMERS TO PAY WITH CASH, WE NOW OFFER A CASH AND NON-CASH PRICE
AS AN INCENTIVE FOR OUR CUSTOMERS, WE NOW PROVIDE A 3.95% DISCOUNT WHEN YOU PAY WITH CASH.
Digital menus, printed menus, and online checkout screens must also reflect this policy.
- Show the Correct Price Breakdown on Receipts
The receipt must show both the base price and the card fee (or card price as a total). Customers need to see what they’re paying—and why.
For example:
nginx
CopyEdit
Base price: $100.00
Non-cash adjustment: $3.00
Total: $103.00
- It is mandatory that you use a compliant program in your payment system device.
Some POS systems or terminals can do this automatically. We provide compliant ones through Electronic Money Company.
- The Fee Must Apply to All Card Types Equally
You can’t pick and choose which cards get charged. The credit card price must apply across all credit and debit cards run as credit cards—Visa, Mastercard, Discover, Amex, etc. That’s how you stay aligned with card brand rules.
- 5. Don’t Mislabel the Program as a Surcharge (unless you follow surcharge rules)
Surcharging (adding a fee only to credit cards) is a different program and has different rules—including advance registration with the card networks. If you’re using dual pricing or cash discounting, don’t call it a surcharge—that’s how many merchants get in trouble.
What Happens If You Don’t Follow the Rules?
- Non-compliance is a big deal. Violating Visa/Mastercard policies or deceptive pricing laws can lead to:
- Hefty fines from$1000 to $25,000 per month for violations.
- Loss of Merchant Account
- Your payment processor may terminate your account, especially if they receive customer complaints or discover non-compliant practices.
- You can Get Customer Backlash. If your receipt, signs, or process feels “sneaky” or misleading, you risk damaging your reputation—and losing trust.
The easiest way to ensure compliance is to work with a provider who specializes in compliant dual pricing systems.
At Electronic Money Company, we offer:
- Pre-programmed terminals and POS systems with compliant pricing displays
- Signage kits and receipt customization
- Staff training and setup support
- Ongoing updates in case the rules change
We make it easy to eliminate credit card fees without risking fines or customer confusion.
Don’t risk doing it wrong.
Let us help you do it right—save money, stay compliant, and keep your customers happy.
Call us at at 505-296-2847 to set up a dual pricing program that’s 100% legal, transparent, and easy to manage.
Stay up to date with our latest videos and merchant services tips, make sure to subscribe to our YouTube channel by clicking the link here: https://bit.ly/EMC_YouTubeSubscribe
