As a restaurant owner, the cost of doing business is constantly evolving. Credit card processing
fees are often one of the largest expenses on your P&L. There are two industry-leading programs
designed to offset these costs and keep more revenue in your pocket. Dual Pricing / Cash
Discount
I.
The Dual Pricing Program. Dual Pricing is the most straightforward way to offer a
discount to your cash-paying customers. With this program, your Point of Sale (POS) system
displays two different prices for every item: one for Credit/Debit and one for Cash.
• How it works: Your menu prices are effectively listed with two price points. When a
customer views their receipt they see both totals.
• The Benefit: It is 100% transparent. Customers don't see a "surcharge" or an "added fee";
they simply choose the price they want to pay based on their payment method.
• Best for: Restaurants that wants to save on credit card processing fees, compliance and a
premium customer experience.
II. The Cash Discount Program. In a Cash Discount program, all items in your restaurant are
listed at their Credit card price. If a customer chooses to pay with cash—you provide an
immediate discount at the register.
• How it works: You post signage stating that all displayed prices represent the credit
price, and a discount is applied for cash payments.
• The Benefit: It encourages cash flow and simplifies the "added fee" conversation by
framing it as a reward for not using a card.
• Best for: High-volume, fast-casual environments or establishments with a loyal, local
customer base.
What you need to do in Your Restaurant.
1.
Update Your Signage: Federal, State and card brand regulations require clear disclosure.
A signage for your entryway and point of sale to ensure you stay compliant.
2. Configure Your POS: Update your menu pricing structure. For Dual Pricing, your digital
menus or printed inserts should reflect both price points.
3.
Staff Training: Ensure your servers and bartenders can confidently explain the programs.
For Dual Pricing A simple script like, "Our menu reflects a cash price and a card price
for your convenience," goes a long way in maintaining guest satisfaction.
Pro Tip: While both programs Cash Discounting and Dual Pricing may be legal across the USA,
it is important to understand the nuances of payment law.
Some states have strict regulations and specific nuances regarding how "surcharging" is handled.
(adding a fee at the end of a transaction). Dual Pricing is generally considered the "gold
standard" for nationwide compliance because it avoids the legal definition of a surcharge entirely.
By presenting two clear prices from the start, you provide total transparency to your guests and
protection for your business.
Disclaimer: We recommend consulting with independent legal counsel regarding specific
regulations and compliance with Federal laws, State statutes, and local disclosure, labor, or
consumer protection laws.
Frequently Asked Questions (FAQ)
Isn't it illegal to charge more for credit cards? No. Following the 2013 Durbin Amendment
and various court rulings, merchants in all 50 states have the right to offer discounts for cash or
use Dual Pricing. While "surcharging" has some state-specific nuances, Dual Pricing and Cash
Discounting are federally compliant because they provide a clear choice to the consumer. We
always recommend consulting with your local legal counsel regarding specific federal, state
labor or consumer compliance and disclosure laws.
Will this drive my customers away? Surprisingly, no. Statistics show that most consumers
value the convenience of using their card more than the small difference in price. In the current
economic climate, most patrons understand that businesses—especially restaurants—are facing
rising costs. As long as the pricing is transparently displayed, the impact on customer retention is
typically negligible.
Is this the same as a “Surcharge"? Not exactly. A surcharge is an addition to a transaction at
the end. Dual Pricing shows two distinct prices from the start, and Cash Discounting offers a
reduction from the listed price. These methods are generally viewed more favorably by card
brands (Visa/Mastercard) and are easier to implement legally.
How do I explain this to a frustrated customer? The best approach is transparency and "The
Choice" logic. We recommend your staff use a simple explanation
"To keep our menu prices as low as possible amidst rising inflation and processing costs, we’ve moved to
a dual-pricing model. This allows us to offer a lower price for cash while still providing the convenience
of card payments for those who prefer it.
Do I need new equipment? Usually, yes. To stay compliant, your receipts must clearly show the
math. You need state-of-the-art POS systems and terminals specifically programmed to handle
these calculations automatically, so your staff doesn't have to do any manual math.
Can I apply this to Debit cards? Under most Cash Discount and Dual Pricing structures, Debit
cards are treated the same as Credit cards because they still incur processing fees for the
merchant. However, the specific configuration depends on the program you choose. You will
need to set the rules that make the most sense for your margins.
Would I be eliminating my Processing Fees? Whether you prefer the transparency of Dual
Pricing or the simplicity of Cash Discounting, you would want to stop letting 3-4% of your gross
sales disappear every month.
Is this legal in my state? While both Cash Discounting and Dual Pricing may be legal across the
USA, it is important to understand the nuances of payment law. Many states have strict
regulations regarding "Surcharging" (adding a fee at the end of a transaction). Dual Pricing is
widely considered the "Gold Standard" for nationwide compliance because it avoids the legal
definition of a surcharge entirely. By presenting two clear prices from the start, you provide total
transparency to your guests and protection for your business.
Disclaimer: We recommend consulting with independent legal counsel regarding specific
regulations and compliance with Federal laws, State statutes, and local disclosure, labor, or
consumer protection laws.
1. Dual Pricing Signage Samples
(In this model, you are showing two separate prices. The goal is to present it as a choice).
Main Entry / Hostess Stand Sign:
Option A: Customer Notice: Dual Pricing Program
To provide our guests with the best possible value, we now offer two ways to pay. Our menu and
receipts display both a Cash Price and a Card Price.
Guests are welcome to choose the payment method that best fits their needs. We appreciate your
continued support of our local business!
Option B: The "Modern & Minimalist" (Best for Fast-Casual)
TWO WAYS TO PAY To offer our guests the most competitive pricing, we now feature Dual
Pricing
• Cash Price: Pay the lower price listed.
• Card Price: Pay the standard price listed.
The choice is yours! We appreciate your business.
Option C: The "Support Local" (Best for Family-Owned/Diners)
PROUDLY SUPPORTING OUR COMMUNITY To offset the rising costs of credit card
processing, we have implemented a Dual Pricing model. You will see both a Cash Price and a
Card Price on our menu. This allows us to keep our food quality high without raising base prices
for everyone. Thank you for your understanding!
Option D: The "Direct & Transparent"
CUSTOMER PRICING NOTICE All items are priced for both Cash and Credit/Debit
transactions. Please refer to our menu for both price points. Guests paying with cash will receive
the displayed Cash Price. All card transactions will be processed at the Card Price.
Point of Sale / Register Sign or Decal for Dual Pricing:
WE OFFER DUAL PRICING
●Pay with Cash: Pay the lower "Cash Price" displayed.
●Pay with Card: Pay the "Card Price" displayed.
The choice is yours!
Menus notes for Dual Pricing (Printed or Digital) :
(This is the most transparent and professional option).
"For your convenience, we provide dual pricing. All items feature a Cash Price and a Credit/
Debit Price. Guests may choose the payment method that best fits their needs."
2. Cash Discount Signage Samples
(In this model, your "sticker price" is the credit price, and you are highlighting the "instant
savings" for using cash).
Main Entry / Hostess Stand Sign:
Option A: Notice to Our Valued Guests.
All displayed prices in this establishment reflect our Credit Card Price. As an incentive to our
customers, we offer an instant discount of [X]% when you pay with Cash. We thank you for
helping us keep our costs down so we can continue serving you!
Option B: The "Instant Reward"
GET AN INSTANT CASH DISCOUNT! Want to save on your bill? Pay with CASH and
receive an immediate [X]% Discount off your total! All listed menu prices reflect our standard
Credit Card price
Option C: The "Inflation Fighter"
HELP US FIGHT RISING COSTS To help us keep our menu prices stable, we offer a [X]%
Discount to every customer who pays with Cash. Our displayed prices include a built-in service
fee that is instantly removed when you pay with cash.
Option D: The "Formal Disclosure" (Best for Compliance-Heavy Areas)
CASH DISCOUNT NOTICE All prices advertised and displayed are the "Credit Card Price."
As an incentive to our customers, we provide a discount to those who pay with Cash. Customers
paying with Cash will receive a [X]% discount which will be reflected on your final receipt.
Point of Sale / Register Sign or Decal for Cash Discounting :
CASH DISCOUNT PROGRAM Use Cash and SAVE [X]% on your total! All listed prices will
be discounted when paying with cash.
Menus notes for Cash Discounting (Printed or Digital)
(This focuses on the "Incentive" for the guest).
All listed prices reflect our standard Credit Card price. As an incentive to our guests, we provide
an instant [X]% discount for all payments made with Cash.
Why proper signage matters and is mandatory:
• Compliance: Card brands require that customers are informed before they order, not just
when they get the bill.
• Transparency: Clearly posted signs eliminate "sticker shock" and reduce awkward
conversations between servers and guests.
• Legal Safety: In some states, failing to post a notice can be seen as "price gouging" or
"deceptive labeling." Using our approved templates keeps you protected.
• Font Size Matters: Signs should be printed in a font large enough to be read from 3–5
feet away.
• Placement is Key: For restaurants, the best spots are the Hostess Stand, Cashier Stand,
the Bar Top, and the Bottom of theMenu.
• Consistency: Ensure the percentage (usually 4%) matches exactly what is programmed
into the POS system.
PRO-TIP: "The 'No-Surprise' Rule. Card brands (like Visa and Mastercard) hate surprises at the
checkout. By placing one of these lines at the bottom of your menu, you ensure the guest is
informed before they even order their first drink. This virtually eliminates complaints and
chargeback risks.”
While some merchants choose to list only Cash Prices with a 'Non-Cash Adjustment' disclosure
at the bottom of the menu, this is technically classified as Surcharging. This model may be
illegal in New York or other states and prohibited on Debit Cards nationwide. For safety, is
recommended listing the Card Price or Both Prices.
Don't hide the sign!" We recommend placing a 5x7 framed sign at the hostess stand and a small
3x3 sticker on every POS terminal or guest check presenter
If you print... Card Price only
Both Prices Cash Price only
It is called...
Cash Discount
Dual Pricing
Surcharging
Compliance Level High (Legal everywhere) Highest (The Gold Standard) Low
Disclaimer: We recommend consulting with independent legal counsel regarding specific
regulations and compliance with Federal laws, state statutes, and local disclosure, labor, or
consumer protection laws.
Success Tools for Your Team - Staff Training: Payment Program FAQs
Goal: Be helpful, transparent, and brief. Never argue—just explain the choice.
Transitioning to a Dual Pricing or Cash Discount program is a big step for your bottom line, but
we know your priority is your guests. To ensure a seamless rollout, you can create a Staff
Training Cheat Sheet for your clients. Below is a sample guide that can empower your servers
and cashiers to handle every transaction with confidence, turning "fee conversations" into
"savings conversations."
Option 1: The "Dual Pricing" Staff Cheat Sheet
(For restaurants that show two separate prices on the menu/screen)
The Strategy: Focus on Choice.
• The Script: "To keep our prices as low as possible, we now offer a Cash Price and a
Card Price. You can choose the one that works best for you!"
• If they ask why: "Processing credit cards has become very expensive. This program
allows us to offer a lower price to guests who pay with cash rather than raising menu
prices for everyone."
• Key Phrase to Use: "You have two ways to pay."
• Phrase to Avoid: "We charge a fee for cards." (Technically, in Dual Pricing, you aren't
adding a fee; you are offering two different price points).
Option 2: The "Cash Discount" Staff Cheat Sheet
(For restaurants where the menu shows one price, and a discount is taken off at the end)
The Strategy: Focus on Savings.
• The Script: "Our menu reflects our standard card prices, but if you pay with cash today,
we’ll give you an instant [X]% discount on your total!"
• If they ask why: "We want to reward our customers who help us save on processing
costs by paying with cash. It’s our way of passing those savings directly back to you."
• Key Phrase to Use: "Instant cash savings" or "Cash incentive."
• Phrase to Avoid: "It costs more to use a card." (Always frame it as the cash-payer
getting a deal, not the card-payer getting penalized).
The "Golden Rule" of Communication
When a customer asks about the price difference, always frame it as a choice or a discount, not a
penalty.
• Avoid: "We charge extra for cards."
• Use: "We offer a lower price for cash."
Standard Scripts (The "Elevator Pitch”)
If the customer asks… "Why are there two prices?”
Your Response should be…. "To keep our menu prices as low as possible, we offer a Dual Pricing model. You get a lower price when paying with cash, or you can choose the convenience
of using a card at the standard price.”
If the customer asks… "Is this a new fee?”
Your Response should be…. "It’s actually a way to give you a discount! If you pay with cash,
you’ll see an instant savings on your bill today."
If the customer asks… "Why did the price go up?”
Your Response should be…. "Like many local businesses, we’re facing rising costs. Instead of a
f
lat price hike for everyone, this program lets our cash customers keep the lower rate.”
Handling Specific Objections
Objection: "I’ve never seen this before. Is it legal?"
• The Answer: "Yes, it is! It’s a standard program used across the country to help
businesses stay competitive. All major card brands (Visa/Mastercard) allow this as long
as we are transparent about the two prices."
Objection: "Does this apply to Debit cards too?"
• The Answer: "Yes, since banks still charge us a fee to process debit transactions, the
'Card Price' applies to both Credit and Debit. The 'Cash Price' is exclusively for physical
cash."
Objection: "I don't have enough cash on me."
• The Answer: "No problem at all! We happily accept all major credit cards at the standard
card price displayed on the menu/screen."
Quick Reference Table for Staff
Program
What to tell the Guest
Dual Pricing
"Our menu shows two prices: one for cash and one for card. You
choose which one you'd like to pay.”
Cash Discount
"The prices on our menu are the card prices, but if you pay with
cash, we’ll take [X]% off your total right now."
Note: Our training scripts are designed to reflect the transparency requirements of major card
brands by using the 'Choice' and 'Discount' language provided, but we always recommend
consulting with your local counsel for compliance.
III.
Surcharge Program
A Surcharge Program allows merchants to pass the cost of credit card processing directly to the
customer. While this is an excellent way to protect your profit margins, it is the most strictly
regulated pricing model in the United States. To remain compliant and avoid heavy fines,
merchants must follow these four instructional pillars:
1. The "Credit-Only" Rule (Avoiding the Debit Trap)
This is the most critical rule for any merchant. Under the Durbin Amendment (Federal Law)
and Card Brand regulations, you are legally prohibited from surcharging any Debit or Prepaid
card.
• Instruction: Even if a customer runs their Debit card as "Credit" (Signature-based), it is
still a Debit card. A surcharge must never be applied to these transactions.
• The Solution: A terminal technology that automatically detects the card type at the
moment of the tap, insert or swipe. Our systems "suppress" the fee on all Debit cards,
ensuring you never accidentally violate federal law. (Not all POS or terminals
automatically detects the card type at the moment of tap, insert or swipe consult with
your POS provider or Merchant company before implementing this program.
2. Transparent Disclosure & Signage
Transparency is not optional—it is a card brand requirement. Customers must be informed of the
surcharge before they pay.
• Instruction: You must display clear signage at both your entrance and your Point ofSale in addition to your printed menus.
• The Content: The sign must state the exact percentage being charged and clarify that the
fee does not exceed your cost of acceptance.
3. The 3.0% Surcharge Cap (2026 Standards)
As of recent industry updates, the maximum allowable surcharge is capped at 3.0%.
• Instruction: You cannot use a surcharge to make a profit. The fee is strictly a "pass
through" to cover your actual processing costs. If your processing rate is 2.5%, your
surcharge should not exceed 2.5%.
• Audit Risk: Setting a surcharge at 4% is an immediate red flag for card brand audits. We
help you calculate your "effective rate" to ensure your cap is set safely.
4. Receipt Itemization
The surcharge cannot be "hidden" in the total price of the items.
• Instruction: Every receipt must show the surcharge as a separate line item. This allows
the customer to see exactly what they were charged for the goods versus the cost of using
a credit card.
If the Client Wants... Total Safety Gold Standard) Simplicity High Risk
They Should Print on the Menu... Both Prices ($10 Cash / $10.40Card) The Card Price ($10.40) and offer a Cash The Cash Price ($10) + a "one-line disclaimer
Legal Status
100% Legal (All states)
100% Legal (All states)
Audit risk for Debit cards.
Final Notes : While both Cash Discounting and Dual Pricing are legal across the USA, it is
important to understand the nuances of payment law. Many states have strict regulations
regarding "Surcharging" (adding a fee at the end of a transaction). Payment regulations can vary
by state and are subject to change. We recommend that all merchants consult with their local
legal counsel to ensure specific state-level compliance and proper consumer disclosure.
Dual Pricing is widely considered the "Gold Standard" for nationwide compliance because
it avoids the legal definition of a surcharge entirely. By presenting two clear prices from the start,
you provide total transparency to your guests and protection for your business, Compliance
should be your priority and we encourage restaurant owners to stay informed on their specific
state’s merchant-disclosure laws. Merchants are solely responsible for the creation, physical
posting, and maintenance of all required signage at the point of entry, point of sale and printed
menus.
Disclaimer: As an independent representative, we provide informational support for third-party
programs; however, the merchant is solely responsible for ensuring all pricing models comply
with Federal laws, state statutes, and local disclosure regulations. We strongly recommend
consulting with legal counsel or local authorities to verify compliance with current consumer
protection and labor laws before implementation. This Information provided is for educational
purposes and does not constitute compliance, legal or tax advice.
RestaurantDealers.com LLC / Focus Restaurant Solutions / The SkyTab Partner is an independent
representative for third-party merchant providers; all processing contracts are held directly with the
provider. Information provided is for educational purposes and does not constitute legal or tax advice.
Merchant assumes all responsibility for program compliance, including required signage and menu
pricing updates. We recommend consulting with legal counsel to ensure compliance with federal, state,
and local laws.
