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Should I use dual pricing to reduce my credit card processing fees?

Writer's picture: SpotOn Buffalo NYSpotOn Buffalo NY


Adding a surcharge to offset the cost of credit card processing fees is a common use of dual pricing. However, there are some potential drawbacks to consider before implementing this strategy:

1. Legal restrictions: In some jurisdictions, adding a surcharge for using a credit card is illegal. Be sure to check the laws in your area before implementing this strategy. 2. Customer perception: Adding a surcharge for using a credit card can be seen as an inconvenience or even a negative experience by customers. This can lead to decreased customer satisfaction and loyalty. 3. Potential loss of sales: Customers who are discouraged by the surcharge may choose to pay with cash or even decide to not make a purchase at all.


Before implementing a dual pricing strategy to reduce credit card processing fees, consider alternative solutions such as negotiating lower fees with your payment processor, adjusting menu prices to include the cost of processing fees, or offering incentives for customers who pay with cash. If you do decide to implement a surcharge for credit card payments, be transparent about the reason for the surcharge and clearly communicate the amount and rationale to customers.

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