Cash discounting and dual pricing both give merchants a way to offset processing costs by offering customers a choice: pay with cash for a lower price or use a card at a slightly higher one.

This creates transparency at checkout, encourages more cash transactions, and protects margins without raising overall prices.

The result is reduced processing fees, improved profitability, and more flexibility for both the business and the customer.

Flat rate pricing charges merchants a single, consistent percentage (and sometimes a small per-transaction fee) regardless of the type of card used.

This keeps statements simple and predictable, making it easier for businesses to budget and understand costs.

The benefit is simplicity and transparency, though it can be more expensive for higher-volume or lower-risk merchants compared to interchange plus pricing.

Also known as Interchange plus pricing, is a transparent billing model where merchants pay the actual interchange fee set by the card networks, plus a small, fixed markup from the processor.

This separates wholesale costs from processor profit, making it easier to see exactly where fees are going.

The benefit is clearer cost control, fairer pricing, and often lower long-term expenses compared to bundled or tiered models.

Compliant surcharging allows merchants to pass on the cost of credit card processing to customers by adding a small fee when they choose to pay with a credit card.

It must follow strict card brand and state regulations, including proper disclosure and never applying surcharges to debit or prepaid cards.

The benefit is that merchants lower or even eliminate credit card processing expenses while staying transparent and within compliance.