By | October 26, 2025

As credit card processing fees continue to rise, more business owners are looking for ways to offset these costs without raising their overall prices. Two popular methods have emerged: surcharging and dual pricing. While both can help you reduce or eliminate your processing fees, they are fundamentally different programs with distinct rules and compliance requirements.

Confusing the two can lead to hefty fines from card brands and even legal trouble. This guide will provide a clear, straightforward explanation of surcharging and dual pricing. We’ll cover the legal landscape, card brand rules, and practical steps for implementation, so you can choose the right program for your business and execute it compliantly.

What’s Inside This Guide:

• What is Credit Card Surcharging?
• The 5 Golden Rules of Compliant Surcharging
• What is Dual Pricing?
• Key Differences: Surcharging vs. Dual Pricing
• Which Program is Right for Your Business?
• Implementing Fee-Offset Programs with Mecca Payments

What is Credit Card Surcharging?

Surcharging is the practice of adding a small fee to a transaction when a customer chooses to pay with a credit card. This fee is meant to cover the cost of accepting that credit card. Importantly, you cannot surcharge debit card transactions.

The 5 Golden Rules of Compliant Surcharging

Surcharging is legal in most U.S. states, but it is heavily regulated by card brands (Visa, Mastercard, etc.). To remain compliant, you must follow these rules strictly:

1. Notify Card Brands: You must notify Visa, Mastercard, and your payment processor in writing at least 30 days before you begin surcharging.
2. Cap the Fee: The surcharge cannot exceed your actual processing cost for that card and can never be more than 3% of the transaction total.
3. Disclose to Customers: You must clearly disclose the surcharge fee at the point of entry (on the door) and at the point of sale (at the register). The fee must also be listed as a separate line item on the customer’s receipt.
4. Credit Cards Only: You can only apply a surcharge to credit card transactions. You cannot add a fee for payments made with debit cards or prepaid cards.
5. Provide a Choice: The customer must have the option to avoid the fee by paying with a different method, like a debit card or cash.

What is Dual Pricing?

Dual Pricing is a different approach. Instead of adding a fee for credit card use, you offer two different prices for your goods or services: a “Card Price” and a “Cash Price.”

The price you display on the shelf or menu is the higher “Card Price.” If a customer chooses to pay with cash or a debit card, you give them an immediate discount at the register, charging them the lower “Cash Price.”

This model is often seen as more customer-friendly because it frames the program as a discount for cash, not a penalty for using a card. It is also less restrictive than surcharging. For example, the discount can apply to debit cards, and there is no cap on the difference between the two prices.

Key Differences: Surcharging vs. Dual Pricing

Which Program is Right for Your Business?

• Choose Surcharging if: Your customer base primarily uses credit cards and you operate in a state where it is clearly legal and accepted. You must be prepared to follow the strict notification and disclosure rules.
• Choose Dual Pricing if: You want a simpler, more flexible program that is often viewed more favorably by customers. It is an excellent choice for businesses like gas stations, convenience stores, and restaurants where offering a cash discount is common.

Implementing Fee-Offset Programs with Mecca Payments

Navigating compliance for these programs can be complex. At Mecca Payments, we provide the technology and expertise to help you implement surcharging or dual pricing correctly and efficiently. Our smart POS systems and terminals can automatically apply the correct fees or discounts, print compliant receipts, and ensure you’re following all card brand rules.  

By partnering with us, you can confidently offset your processing fees while we handle the technical and compliance details, letting you focus on running your business.

About the Author:

• is a Senior Payments Consultant at Mecca Payments with over 15 years of experience in the financial technology industry. He is dedicated to helping small and medium-sized businesses demystify payment processing and implement strategies that enhance profitability and operational efficiency.