WHY DUAL PRICING IS THE PROGRAM YOU'RE LOOKING FOR TO ELIMINATE YOUR PROCESSING FEES

 Compliance with laws and regulations is crucial when implementing a cash discount program. The Durbin Amendment, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, allows merchants to offer discounts to customers who pay with cash or other non-credit methods. However, it’s essential to understand the specific regulations and laws in your state and industry. 

 Merchants must also comply with card brand rules, such as those set by Visa and Mastercard. These rules dictate how cash discounts and surcharges can be implemented, including requirements for signage and disclosure.

To ensure compliance, it’s recommended that merchants consult with a qualified attorney or a reputable merchant service provider who is familiar with the relevant laws and regulations.

 If you’re surcharging credit cards, you must be prepared to deal with the negatives, including:

• Laws are constantly changing and vary by location.
• Processors may take advantage of you.
• Implementing a surcharging program isn’t always straightforward.
• It’s an administrative hassle.
• Your staff may get fewer tips.
• It can negatively impact your online reputation.

 As a business owner, you set a distinct cash price for their offerings and simply add a percentage to determine the credit price, a process effortlessly managed by point-of-sale (POS) software. This percentage difference covers the business’s processing and program costs. At checkout, the POS keeps track of both cash and credit prices, allowing customers to choose their preferred payment method. The final touch is a printed receipt, detailing the transaction with transparency and precision. It’s a seamless and efficient dance between pricing strategy, POS calculations, and customer choice, ensuring a smooth and clear transaction experience. 

• Truth in Lending Act (TILA) – Passed in 1968, protects the right to offer cash discounts.
• Durbin Amendment (2010) – Affirms merchant rights to control fee structures.
• Expressions Hair Design v. Schneiderman (2017) – U.S. Supreme Court ruled dual pricing communication as a First Amendment right.
• Visa/Mastercard Rules – They support dual pricing models when done transparently.

✅ As of 2025, dual pricing is legal in all 50 U.S. states and territories.