Payment Processing Guide
A plain-language explanation of dual pricing — what it is, how it works at the register, who it's right for, and how much it can save.
If you're a small business owner who accepts credit cards, you're paying somewhere between 2% and 4% of every card transaction to your processor. On $50,000 a month in volume, that's $1,000–$2,000 gone before you pay a single other expense. Dual pricing is one of the most effective compliant strategies available to eliminate most or all of that cost — and it's simpler to implement than most business owners expect.
Dual pricing is a payment model where your business displays two prices for every item or service: a card price and a lower cash price. Customers who pay by card pay the card price. Customers who pay with cash or ACH (bank transfer) pay the discounted cash price.
The spread between the two prices — typically 3.5% to 4% — is calibrated to cover your processing costs. When a customer pays by card, their payment covers the fees. When they pay cash, you receive slightly less, but with no processing cost, the net result is nearly the same.
This structure means your business can effectively stop absorbing processing fees as an overhead cost — because the customers who generate those fees are now covering them.
In practice, dual pricing is transparent and straightforward for both the business and the customer. Here's what the experience looks like:
There's no manual calculation, no added fee appearing at the last second, and no awkward conversation at checkout. The pricing is set at the account level and displayed automatically by your terminal.
Both programs shift processing costs to card-paying customers, but they work differently and have different legal availability.
With surcharging, your base price is the cash price. When a customer pays by credit card, a surcharge (up to 4%) is added at checkout. Surcharging is restricted in Connecticut and Massachusetts, and only applies to credit cards — not debit.
With dual pricing, your advertised price is the card price. Customers who pay with cash or ACH receive a discount. No fee is being added — a discount is being offered. This distinction makes dual pricing available in all states except Connecticut and Massachusetts, with no card-type restrictions — including debit cards and digital wallets.
Dual pricing works well for most retail and service businesses. It tends to be a particularly strong fit when:
It's used across a wide range of business types: auto repair shops, medical and dental offices, salons, restaurants, retail stores, contractors, and service businesses of all kinds. If you accept card payments and want to stop paying for the privilege, dual pricing is worth a close look.
Most businesses on a dual pricing program eliminate 90–100% of their processing fees, net of a $25/month program fee. The savings scale directly with your monthly volume and current rate.
A business processing $30,000 per month at a 2.75% effective rate is currently paying $825/month — $9,900/year — in processing fees. On dual pricing, that same business would pay $25/month and keep the rest. Over three years, that's nearly $29,000 in savings.
Free Tool
Enter your monthly volume and current rate to see what dual pricing could mean for your business — before you ever talk to us.
Calculate My Savings →Common Questions
Yes, with one geographic caveat. Dual pricing through ConsumerChoice is available in all states except Connecticut and Massachusetts. As long as both prices are clearly displayed before the customer pays, the program complies with card network rules and applicable laws.
Yes. Because dual pricing operates as a cash discount rather than a card surcharge, it applies to all payment types — credit, debit, and digital wallets like Apple Pay and Google Pay. This is one of the key advantages over surcharging programs, which typically exclude debit cards.
In practice, most customers are familiar with the concept — they've seen cash discounts at gas stations for decades. The important thing is clear, upfront disclosure, which compliant programs handle automatically through terminal and receipt messaging. Many business owners find that some customers actively appreciate the option to save by paying cash.
It depends on your current setup. Some existing terminals can be reprogrammed for dual pricing. Others require a terminal that supports the program. During your onboarding consultation, we'll review your current equipment and let you know exactly what's needed — and whether any upgrade makes financial sense given your projected savings.
ConsumerChoice is Payroc's dual pricing program, available through Lubao. It's available in all states except Connecticut and Massachusetts, includes Same-Day Money Express at no extra cost, and carries a $25/month program fee. It's the most popular pricing program we offer because it eliminates the most processing cost with the fewest restrictions.
We'll review your current processing statement, walk through the options, and give you a clear picture of what you'd save — with no pressure and no obligation.