Fee programs are one of the most effective ways to reduce what you pay in processing — but "cash discount" and "dual pricing" get used interchangeably even though they work differently. Here’s the plain-English version.
Cash discount
With a cash discount, you post your card price as the standard price, then offer a discount to customers who pay with cash. The customer paying cash pays less; the card-paying customer pays the listed price, which already accounts for processing cost.
- Listed price is the card price
- Cash customers get a discount at the register
- Simple to explain: "we offer a discount for cash"
Dual pricing
Dual pricing shows two prices up front — a cash price and a card price — so the customer sees both and chooses. There’s no "surcharge" being added; the two prices are simply displayed side by side on the shelf, menu, or screen.
- Both prices shown before checkout
- Customer decides with full transparency
- Common on menus, shelf tags, and the terminal screen
Which one fits you?
Dual pricing tends to feel most transparent to customers because they see both numbers and choose. Cash discount is simplest to communicate. The right fit depends on your industry, ticket size, and how your prices are displayed today. Modern terminals from PAX, Dejavoo, and Valor can run either automatically and print compliant receipts.
Staying compliant
Both programs are legal in most of the U.S. when set up correctly — with proper signage, accurate receipts, and adherence to card-brand rules. The mistakes that get merchants in trouble are almost always about disclosure, not the concept. That’s why we handle the signage and configuration for you.