💳 Surcharging, Dual Pricing, and Cash Discounts: What Business Owners Need to Know

At MoxiePay, transparency and compliance are at the heart of what we do. Many business owners are hearing about programs like surcharging, dual pricing, and cash discounts, but the details can get confusing. Unfortunately, some providers are promoting non-compliant setups that put merchants at risk.

The right program can help you offset processing costs. The wrong one can lead to fines, account closures, and frustrated customers.

Here is a simple breakdown of the differences.

Compliant Surcharge

A surcharge is a small fee added only to credit card transactions, never debit. To be compliant, it must:

• Be clearly disclosed to customers

• Be capped at 3%

• Be registered with the card brands

A properly implemented surcharge helps you reduce processing expenses while staying transparent and within card-brand rules.

Dual Pricing

Dual pricing displays both the cash and card price so customers can choose their preferred payment method. This approach keeps pricing transparent and compliant when properly disclosed and labeled at the point of sale.

Cash Discount

A true cash discount program means posting the higher card price and offering a discount when a customer pays with cash. This approach can be compliant, but the term is often misused.

Many providers advertise “cash discount” programs that actually add fees to card transactions instead of discounting cash payments. Those setups are considered surcharges and require proper registration and disclosure to stay compliant.

❌ Non-Cash Adjustment or Surcharge

Some programs advertise “non-cash adjustments” or display signs that say “all prices include a cash discount.” These programs typically add a fee at checkout when a customer pays with a card.

Card brands classify this as a surcharge. If it has not been registered or properly disclosed, it is a violation of card-brand rules.

Why Compliance Matters

Operating a non-compliant program might seem harmless at first, but the consequences can be serious.

Here is what can happen:

• Fines: Card brands can impose penalties.

• Account Risk: Your merchant account could be shut down.

• Reputation: Customers lose trust when fees are not transparent.

How MoxiePay Helps

MoxiePay helps businesses reduce fees the right way through transparent and compliant surcharging solutions. We guide you through every step to make sure your setup meets all brand requirements and keeps you protected.

Is your business compliant? Let’s find out. Schedule a quick call today.