1. Dual Pricing

Definition:

Dual Pricing offers two displayed prices:

• A lower price for cash
• A higher price for card payments (which includes the cost of processing)

Customer-Friendly Explanation:

“This setup lets customers choose how they want to pay — cash or card — and they can see the cost difference. It helps you avoid eating credit card fees while staying compliant with regulations, as long as signage is clearly posted.”

How to Explain to a Merchant:

“You’ll post two prices: one for cash, and one for card. The card price includes the cost of accepting credit cards, so you don’t lose profit on those sales. It’s compliant when done correctly and makes it clear to your customers.”

Best For:

Merchants who want to offset processing costs without raising prices across the board.

2. Interchange Plus (IC+) Pricing

Definition:

This is a pass-through pricing model where the merchant pays:

• The actual interchange fee from the card networks (Visa, Mastercard, etc.)
• Plus a fixed processor markup (e.g., 0.25% + 10¢)

Customer-Friendly Explanation:

“This model itemizes every part of the cost. You see exactly what goes to the card brands and what your processor is charging. It’s one of the most transparent options.”

How to Explain to a Merchant: