Dual Pricing: How It Works

Dual pricing, also known as cash discounting, is a pricing strategy that allows businesses to offer a lower price to customers who pay using cash or non-card methods, while maintaining a standard price for card payments.

This approach helps businesses manage card processing costs in a way that is clear, transparent, and built into the pricing structure.

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How It Works

With dual pricing, your business presents two prices:

• Cash Price – a lower price for customers paying via cash, bank transfer (ACH), or other non-card methods
• Card Price – the regular price that includes the cost of card processing

Instead of adding fees at checkout, the pricing difference is reflected upfront.

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Why Businesses Use It

Card processing fees can reduce overall profit, especially for businesses with high transaction volumes. Dual pricing provides a practical way to manage these costs.

Benefits include:

• Helps offset or reduce processing fees
• Keeps pricing clear and upfront
• Encourages customers to choose lower-cost payment methods
• Protects business margins

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Dual Pricing vs. Surcharging

These two models are often confused but operate differently:

Dual Pricing / Cash Discounting

• Two prices are displayed: a Card Price and a Cash Price
• A discount is given for paying with cash or non-card methods

Surcharging

• An additional fee is added when a customer pays with a credit card
• If a customer pays with a debit card, the merchant typically covers the processing fee

Dual pricing focuses on offering a discount rather than applying a fee at checkout.

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Compliance and Transparency

To use dual pricing correctly, businesses must clearly communicate pricing to customers.

This includes:

• Displaying both cash and card prices where applicable
• Informing customers before payment is made
• Ensuring receipts reflect the correct pricing

Requirements may vary depending on location and card network rules.

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How Deposyt Supports Dual Pricing

Deposyt provides tools that allow businesses to implement dual pricing in a structured and compliant way.

You can:

• Configure pricing for both cash and card payments
• Maintain transparency during checkout
• Track transactions within your CRM
• Align payment data with customer activity

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In Simple Terms

• Two prices are shown: lower for cash, standard for cards
• The goal is to reduce processing costs without surprising customers
• Dual pricing is a simple and effective way to manage fees while keeping pricing clear and consistent