Cash Discount / Dual Pricing
MSB Processing
Cash discount programs (also known as dual pricing) allow merchants to offer a lower cash price while applying a transparent service fee to credit and debit card transactions. This compliant approach helps businesses offset processing costs—typically 2–4% per transaction—without violating card network rules.
Under the Durbin Amendment (part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act), merchants may provide incentives to customers who pay with cash. The key is transparency: you set clear cash prices and disclose any card service fee upfront.
To stay fully compliant:
- Display clear signage at store entrances and all points of sale explaining your cash discount program.
- Show a distinct line item on every receipt—either a cash discount or a credit/debit card service fee.
- Use compatible payment terminals and software that properly handle pricing and disclosures to prevent overcharging.
MSB PROCESSING
Frequently Asked Qusetions
Yes. All 50 states permit cash discount and dual pricing programs thanks to the Durbin Amendment, part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. Merchants may offer a discount for cash payments or apply a transparent service fee to credit and debit card transactions, as long as the program is clearly disclosed to customers.
Yes. The Durbin Amendment allows merchants to pass on processing costs through a dual pricing model. You can either offer a cash discount or add a service fee for card payments. The key is full transparency through proper signage and clear receipt line items.
Dual pricing (also called a cash discount program) lets you set a base cash price and automatically add a service fee when customers pay with a credit or debit card. To remain compliant:
* Display clear signage at entrances and all points of sale.
* Show a distinct line item on receipts (Cash Price / Service Fee or Cash Discount).
* Use compliant payment terminals and software.
No. You do not need to reduce your current prices. With proper signage stating “All prices shown are cash prices,” the credit/debit card service fee is automatically added at checkout for card transactions. Your sticker prices stay the same.
* Cash Discount / Dual Pricing: You advertise a lower cash price and add a service fee for card payments.
Surcharge: You add an extra fee on top of the advertised price specifically for card use (more restricted by some card networks). Most merchants prefer dual pricing because it is simpler and widely supported when done correctly.
Most businesses pay between 2% and 4% per credit card transaction. Our dual pricing program helps you recover these fees by passing them transparently to the customer as a service fee (instead of absorbing the cost yourself).
No problem. If you’re not satisfied with the cash discount / dual pricing program, we’ll gladly switch you to a traditional processing rate structure at any time.
Yes. Cash discount / dual pricing programs must be offered through a compliant processor and compatible terminals. MSB Processing provides the right technology, signage, training, and ongoing support to ensure your program is fully compliant and easy to manage.
Cash discount programs for merchants
What You Need to Know
