Dual pricing vs. flat-rate processing: the math on a real month

Flat-rate processing (Square's 2.6% + 10¢ is the famous one) wins on simplicity: one number, no statement archaeology. Dual pricing wins on math: the customer covers the card cost. Here's an honest month side by side.

The setup

A pizzeria doing $40,000/month in card volume across 2,000 transactions ($20 average ticket).

Flat rate: 2.6% + 10¢

• Percentage: $40,000 × 2.6% = $1,040
• Per-transaction: 2,000 × $0.10 = $200
• Monthly cost: ~$1,240 · Annual: ~$14,900

Clean, predictable — and every dollar of it comes out of your margin. On a pizzeria's net, $14,900 a year is often a full month of profit.

Dual pricing

• Card payers see a card price ~3–4% above the cash price — the spread covers the processing
• Your processing cost: at or near $0, with a modest monthly program fee
• Annual savings vs. flat rate: roughly $13,000–$14,500

So why does anyone stay flat-rate?

• Optics: some owners don't want two prices on the menu. Fair — it's a real preference, and interchange-plus splits the difference by cutting the rate without changing the customer experience.
• Very low volume: under ~$5k/month, the absolute dollars are small and simplicity can win.
• They've never seen the math. The most common reason by far.

Want this table with your own numbers? Upload a statement — the review is free and the math is yours to keep either way.