Debunking the Myths About Dual Price Processing

As the payment industry evolves, more businesses are turning to innovative solutions like dual price processing to manage rising processing costs. Despite its benefits, several misconceptions persist, causing some merchants to hesitate in adopting this model. It's time to set the record straight and debunk some common myths about dual price processing.

Myth 1: Dual Price Processing is the Same as Surcharge Programs

Reality: Dual price processing and surcharge programs are not the same. While both offer a way for merchants to offset the cost of card processing, they function differently. In dual price processing, customers are presented with two distinct prices: one for cash payments and one for card payments. Surcharge programs, on the other hand, involve adding an extra fee for credit card transactions, often as a percentage. Dual price processing gives customers a transparent choice between paying with cash or card, without the appearance of a “penalty” for using credit.

Myth 2: It’s Illegal to Offer Dual Price Processing

Reality: Dual price processing is fully compliant with federal laws. Unlike surcharging, which is restricted in certain states, dual price processing operates within legal frameworks nationwide because it reflects a price difference based on payment type, not an additional fee. By offering two clearly displayed prices, businesses stay compliant while offering customers flexibility in payment methods.

Myth 3: Dual Price Processing Will Scare Away Customers

Reality: Some merchants worry that displaying different prices for cash and card payments will drive customers away. In fact, many consumers are already familiar with similar practices, especially at gas stations. Research shows that customers appreciate transparency and are willing to pay a small premium for the convenience of using a card. In some cases, businesses that implement dual price processing experience increased cash payments, which helps reduce processing costs.

Myth 4: Dual Price Processing is Too Complicated to Implement

Reality: Implementing dual price processing is simpler than you might think. With the right payment processor, your business can easily update its systems to display both cash and card prices. Modern POS systems and terminals can be programmed to automatically calculate and display both prices, eliminating the need for manual adjustments. At Corpay USA, we provide merchants with all the tools needed to seamlessly integrate dual price processing into their existing payment infrastructure.

Myth 5: It’s Only for Cash-Heavy Industries

Reality: Dual price processing is versatile and can be used across various industries. While it’s true that businesses in cash-heavy sectors, like convenience stores and gas stations, were early adopters, dual price processing is now gaining traction in a wide range of industries. From restaurants and retail to service-based businesses, any merchant looking to reduce their processing costs can benefit from this model.

Conclusion

Dual price processing offers merchants a straightforward way to manage payment processing costs while giving customers more control over how they pay. By debunking these myths, it's clear that this solution is not only legal and transparent but also easy to implement and customer-friendly.

At Corpay USA, we help businesses transition to dual price processing with ease, offering cutting-edge technology and full compliance support. Ready to learn how dual price processing can benefit your business? Contact Corpay USA today to get started.