Reduce or Eliminate Fees

Surcharging credit cards is permitted in most U.S. states under card-brand rules and applicable state laws, but it is not legal everywhere. As of the date of this writing, surcharging is typically prohibited in states such as Connecticut and Massachusetts, and laws may vary by jurisdiction. Merchants should confirm applicable local requirements and consult with their processor or legal counsel before enabling a surcharge.

A surcharge allows a merchant to apply a fee (up to the legal cap) to credit card transactions only in order to recover part or all of the cost of accepting credit cards. Surcharges cannot be applied to debit cards, prepaid cards, EBT, or other non-credit payment types, even if processed as “credit.”

Card brands (e.g., Visa, Mastercard) typically require merchants to:
• Provide advance notice to the card networks and your acquirer before beginning a surcharge program.
• Clearly disclose the surcharge at the point of entry and sale, and on transaction receipts.
• Cap the surcharge at the lower of the merchant’s actual cost to accept credit cards or the brand’s maximum permissible rate (often 3%).

This technology automatically identifies whether a card is credit or debit and applies the surcharge only to eligible credit card transactions. For businesses with heavy credit card usage, a surcharge program can reduce processing costs, whereas businesses with a high volume of debit or cash transactions may see less benefit and might consider alternative programs like Cash Discount or Dual Pricing.

Merchants implementing a surcharge must also follow card network disclosure requirements, including posting clear signage at the point of entry and checkout and showing the surcharge as a separate line item on receipts.

Dual Pricing is a transparent pricing model in which you display two prices for goods or services: one for customers who pay with cash (or equivalent non-credit payment) and a separately displayed price for customers who pay with credit cards. Dual Pricing is generally legal in all 50 U.S. states when implemented in compliance with card brand and local rules.

Unlike a surcharge, Dual Pricing requires that both prices be clearly communicated before checkout, such as on menus, price tags, or online. Transparency helps ensure compliance and customer clarity. The price difference reflects the cost of payment acceptance and must be displayed in a way that customers understand they have a choice on how they pay.

Our solutions support Dual Pricing with a flat rate acceptance model designed to cover payment processing costs while giving customers a clear view of their options. Merchants should always confirm disclosure and signage requirements with their payment provider and legal counsel.

A Cash Discount program helps merchants recover credit card acceptance costs by discounting the posted price for customers who pay with cash, check, or other non-credit card payment methods. Cash Discount programs rely on the right to offer discounts for prompt or preferred payment, which is distinct from charging a fee.

With our solutions, merchants can automatically adjust posted prices at the point of sale to reflect a cash price and a card price. Like Dual Pricing, this model requires clear communication of the pricing structure so customers understand the difference between payment methods. Cash Discounts generally do not have percentage limits under state or card-brand rules, but your business must ensure transparency in pricing disclosures.

Cash Discount programs give merchants flexibility to structure pricing so that the discounted price for non-card payments helps offset the cost of card acceptance, depending on the merchant’s pricing strategy.

Our various solutions that handle these specialized programs will bill a small monthly program fee that covers administrative costs to maintain the technology and provide ongoing support. You and your business deserve to keep as much of your hard-earned money as possible, and these popular programs will help you retain money that you used to spend on processing payments, putting those dollars to better use.

This platform supports compliance with card brand rules and state laws, but requirements vary by state and card network. Before you deploy Surcharge, Cash Discount, or Dual Pricing, you should consult qualified legal counsel and your acquiring bank or processor to confirm compliance for your business type and location based on current laws and card brand rules.

Reach out to one of our specialists today to find out how you can lower your processing costs at your business with these great programs.