If you run a restaurant, retail store, or service-based business in Ohio, you have probably heard about dual pricing. Maybe a competitor started offering it. Maybe your processor mentioned it. Maybe you saw signage at a local shop showing two prices — one for cash, one for card.
Dual pricing is one of the fastest-growing strategies for small and mid-sized businesses to reduce or eliminate credit card processing fees. But there is a lot of confusion about how it actually works, whether it is legal, and how customers respond.
This guide breaks it all down.
What Is Dual Pricing?
Dual pricing is a pricing model where a business displays two prices for every item or service: a cash price and a card price. The cash price is the base price. The card price includes a small service fee to cover the cost of processing the credit card transaction.
This is different from a surcharge (which adds a fee at checkout only to credit cards) and different from a cash discount (which frames it as a discount for paying with cash). Dual pricing is the most transparent version: both prices are visible to the customer before they make a purchasing decision.
How Does It Work at Checkout?
Here is what the experience looks like for a customer:
- Menu boards and signage show both the cash price and the card price for every item
- Receipts clearly display the pricing the customer selected
- There are no surprises — the customer sees both options before they order or check out
For businesses using Clover POS or similar systems, dual pricing is built directly into the checkout flow. The system automatically calculates and displays both prices based on the payment method selected.
Is Dual Pricing Legal?
Yes. Dual pricing is legal in Ohio and in all 50 states. Businesses have always had the right to set their own prices for goods and services. Dual pricing simply makes the cost of accepting different payment methods transparent to the customer.
There are a few compliance requirements to keep in mind:
- Signage must be clearly displayed at the entrance and at the point of sale
- Both prices must be visible before the customer makes a purchasing decision
- Receipts must reflect the correct pricing based on the payment method used
- The program must be set up correctly through your processor to ensure compliance
Cloud9 Payments handles all of this during setup — signage, POS configuration, receipt formatting, and compliance review.
How Much Can a Business Save?
The average small business pays between 2.5% and 3.5% of every credit card transaction in processing fees. For a restaurant doing $30,000 per month in card sales, that is $750 to $1,050 per month in processing costs alone.
With dual pricing, those costs shift to the customers who choose to pay with a card. Many businesses see their effective processing cost drop to near zero.
Here is how the math works for a typical Ohio restaurant:
- Monthly card volume: $30,000
- Average processing rate: 3.0%
- Monthly processing cost without dual pricing: $900
- Monthly processing cost with dual pricing: Near $0
- Annual savings: Approximately $10,800
Those are real dollars that go back into payroll, inventory, equipment, or marketing.
How Do Customers Respond?
This is the number one question business owners ask. The short answer: most customers do not mind.
Studies and real-world experience show that the majority of customers either pay with a card and accept the small difference, or switch to cash. Very few customers complain once they understand both prices are clearly displayed.
Here is what we have seen across hundreds of Ohio businesses:
- 60-70% of customers continue paying with a card and accept the card price
- 20-30% of customers switch to cash to save the difference
- Less than 5% express any concern, and most of those are resolved by the clear signage
The key is transparency. When customers see both prices clearly before they order, it feels fair. There are no hidden fees, no surprise charges at checkout.
Dual Pricing vs. Surcharging vs. Cash Discount
These three programs are often confused, but they work differently:
Dual Pricing displays two prices for every item — a cash price and a card price. Both are visible before the customer buys. This is the most transparent approach.
Surcharging adds a fee at checkout only when a customer pays with a credit card. The surcharge is typically capped at 3% and must be disclosed. However, surcharging is not allowed on debit cards, which creates complexity.
Cash Discount frames the base price as the card price and offers a discount for paying with cash. The discount is applied at checkout. This requires specific signage and POS configuration.
Cloud9 Payments recommends dual pricing for most businesses because it is the most transparent, easiest to implement, and best received by customers.
Who Is Dual Pricing Best For?
Dual pricing works well for businesses where:
- A meaningful percentage of transactions are in-person (card-present)
- The business has a fixed menu or price list that can display both prices
- The owner wants to reduce or eliminate processing fees without raising prices across the board
- Customers are local and repeat visitors who will quickly get used to the pricing model
Industries that benefit most include:
- Restaurants and food service — menus, counter service, and QSR
- Retail stores — especially convenience, specialty, and neighborhood shops
- Service businesses — salons, auto repair, dry cleaners, and more
How to Get Started with Dual Pricing
If you are considering dual pricing for your business, here is what the process looks like with Cloud9 Payments:
1. Free statement analysis. We review your current processing costs to show you exactly how much you are paying and how much you could save with dual pricing.
2. Program setup. We configure your Clover POS or payment terminal to support dual pricing. This includes menu pricing, receipt formatting, and compliance settings.
3. Signage and materials. We provide compliant signage for your entrance, counter, and point of sale. Everything is designed to be clear and professional.
4. Staff training. We walk your team through how dual pricing works, how to explain it to customers, and how to handle any questions.
5. Ongoing support. After launch, we monitor your account, handle any adjustments, and provide same-day local support from our Chagrin Falls, Ohio office.
Dual pricing is not about passing costs to customers — it is about giving them a choice. When both prices are transparent, everyone wins. The business saves money, and the customer decides how they want to pay.
Ready to see if dual pricing is right for your business? Book a free strategy call with Cloud9 Payments.