Compliant Dual Pricing: The Right Way to Control Processing Fees

Controlling costs has leapfrogged to the top of restaurant operators’ priority lists. Although your point of sale (POS) system will help you save time so your team can work faster and easier, some costs are out of your control. The U.S. Bureau of Labor Statistics reported that labor costs rose in the second quarter of 2025, and the USDA predicts that food prices will rise 2.7% in 2026. The good news is you can control some of your expenses, and it may surprise you that payment processing fees fall into that category. A compliant dual pricing solution can help you save thousands of dollars each year. 

You’ve probably noticed that payment processing fees have increased. You need to accept electronic payments to let your customers pay the way they want to, but the fees can eat into your profits. For example, if your customers use credit cards for $100,000 in sales each month, and your payment processor charges you 3% on each transaction. That adds up to $3,000 per month or $36,000 per year that you have to pay. If your business is trying to survive as margins get thinner and thinner, finding a way to reduce that cost can help you stay in business. While some programs help you cover only a portion of your processing fees, dual pricing gives you a way to cover all of your payment processing costs.

What is Dual Pricing?

With dual pricing, you give your customers the choice between two prices: one for cash and one for card transactions. The cash price is lower, which budget-conscious consumers will appreciate. And remember, when they pay with cash, you don’t have to pay any payment processing fees. If your customer decides to use a card, whether they insert it into a terminal or make a contactless payment with a mobile wallet, they pay the card price. We’ve designed Reflection POS to allow you to display both the cash and card prices, accurately charge customers based on how they pay, and to do all the calculations and reporting you need.

The Benefits of Dual Pricing

Take a minute to consider what dual pricing can do for your business: 

• Eliminate or lower payment processing costs. Your customers cover the fees when they check out. 
• When the cost of doing business goes down and revenues keep coming in, your profitability goes up. 
• With dual pricing, your customers can choose to pay a lower price. It’s a great way to provide transparency and improve customer experiences.

Making Dual Pricing Compliant

If you’re ready to move to this model to give your business these benefits, you need to make sure you follow the rules and regulations for dual pricing. To offer dual pricing compliantly, you must ensure all of your customers know the amount they’ll pay if they use cash or a card. The easiest way to do this is to have notifications at the point of sale and throughout your business that show the cash and card prices on signage, menus, or menu boards. You also need to clearly show the price of items, how the customer paid, and the price for that payment method (cash or card) on the receipt. Also, make sure you adhere to all state or municipal regulations where you do business. Laws pertaining to dual pricing can vary from place to place, so make sure each of your locations is in compliance.

NCC Has Your Back

We know the pain that payment processing fees can create for restaurants struggling with rising costs, but we also know that dual pricing can help your business – if you do it compliantly. Our latest version of Reflection POS has built-in dual pricing compliance features like automated calculations, compliant receipts, and reporting that let you cover payment processing costs while you follow the letter of the law. Some point of sale software providers might advertise compliant dual pricing, but our software is proven, reliable, and it’s easy to configure and use. 

Contact us to learn more about a change that can help you operate more profitably and compliantly.