Is Dual Pricing Legal? Everything You Need to Know in 2025

Kadima Mechanic Shop Checkout

Dual pricing has become a powerful strategy for businesses looking to cut processing costs — but is it legal? The short answer: Yes, but only if done right. Here’s what you need to know about legality, signage, compliance, and how Kadima can help you implement it the right way.

What is Dual Pricing?

Dual pricing is when a business offers two prices: one for cash and one for card. This isn’t a surcharge or a hidden fee — it’s a fully compliant pricing structure that clearly displays both prices upfront. It's growing in popularity as a way for businesses to offset the increasing cost of card processing fees without raising prices across the board.

Is Dual Pricing Legal in 2025?

Yes. Dual pricing is legal in all 50 states — but only if done properly. The law is less about what you charge and more about how you disclose it. That’s where signage comes in.

To be compliant, the customer must be informed of both pricing options before the transaction is processed. This means clearly displayed signage at the point of entry, on menus or product displays, and at checkout.

State-by-State Nuances

While dual pricing is legal nationwide, some states like California and New York may enforce additional rules about signage placement or language clarity. Kadima monitors these updates so you don’t have to.

Dual Pricing vs. Surcharging

This is where most businesses get confused. A surcharge is an added fee applied at checkout, often in violation of card network rules in some states. Dual pricing is a pre-disclosed price difference shown before the purchase decision — and it’s compliant when done correctly.

Here's a breakdown:

  • Surcharge: $10 + 4% added at checkout = $10.40 (⚠️ Often non-compliant)
  • Dual Pricing: Cash price $10, Card price $10.40 — shown up front ✅

What Does Compliant Signage Look Like?

To stay compliant, signage should clearly show the dual price breakdown. Example:

Cash Price: $100
Card Price: $104 (Includes 4% card processing adjustment)

Signage must be placed at the entrance, near the register, and on invoices or digital checkout screens. Kadima provides pre-built signage kits and digital templates that meet card brand and state requirements.

RapidPayLink — Kadima's lightning-fast AR tool — is also compatible with dual pricing. You can send invoices, collect payments, and automatically apply card or cash pricing in a compliant way, all through a simple payment link. We don’t just set you up with a dual pricing program — we make sure it’s bulletproof. Every Kadima merchant receives:

  • Custom signage (print and digital)
  • Compliance review of physical and online checkout flow
  • POS terminal setup and training
  • Automated receipts that break down pricing and fees

Real-World Results

One of our retail clients in Los Angeles switched to Kadima's dual pricing program and reduced their effective processing costs by 92%. Their customers appreciated the transparency, and their margins went up without raising sticker prices.

In another case, a home services contractor was previously surcharging — and at risk of non-compliance. We transitioned them to a fully compliant dual pricing model within 72 hours, complete with signage and gateway updates.

Ready to Get Started?

Schedule a call with Kadima Payments today and see how dual pricing can reduce your fees and increase your margins — all 100% legally.

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