Dual pricing posts two prices — a lower cash price and a slightly higher card price — so the cost of accepting a card is built into the card price instead of coming out of your margin. Done compliantly, it can take your effective processing fees to near zero. Here's exactly how it works, what the numbers look like versus Stripe and Square, and how to run it legally in all 50 states.
First, what card acceptance really costs you
Every card sale has three layers of cost: interchange (set by Visa/Mastercard and paid to the card-issuing bank), assessments (the networks' own small cut), and the processor's markup. Interchange alone averages roughly 1.8% for debit and 2.3% for credit, assessments add about 0.13%–0.15%, and then your processor adds its margin on top. For most U.S. small businesses the all-in effective rate lands between 2.6% and 3.2% of revenue.
Flat-rate apps make that feel invisible by blending it into one number. Here's what the big names publish for 2026:
How dual pricing actually works
You post a cash price and a card price — the same idea you've seen at the gas pump. Customers who pay cash pay less; customers who pay by card pay the listed card price, which already covers the cost of acceptance. Because it applies to both credit and debit, it typically saves more than surcharging — surcharging legally can't be applied to debit cards at all.
The difference isn't a surprise fee at the end. Both prices are posted up front, the customer chooses, and the math simply works out in your favor on card sales.
Is it legal?
Yes — dual pricing is legal in all 50 states when it's disclosed correctly. That means clear signage at the entrance and register and the right language on receipts. (Surcharging, a different model, is restricted or capped in some states — which is another reason dual pricing is the cleaner path.) Velocity sets up the signage, receipt wording, and terminal configuration so your program is compliant from day one.
Dual pricing vs. Stripe and Square
Stripe and Square are easy to sign up for — and that convenience is exactly what you pay for, every single day, on every sale. Here's the honest comparison:
| Compare | Velocity (Dual Pricing) | Stripe | Square |
|---|---|---|---|
| Your effective processing cost | Near $0 | ~2.9% + 30¢ | 2.6%–3.3% + fee |
| Applies to debit, too | Yes | Flat fee applies | Flat fee applies |
| Fund holds / reserves | Underwritten up front | Common for new accounts | Common for new accounts |
| Human support | A real rep who knows you | Mostly email / docs | Mostly chat / docs |
| Setup speed | A few business days | Minutes | Minutes |
Is dual pricing right for your business?
It shines for businesses with tight margins and steady card volume — restaurants, convenience and liquor stores, salons, auto, and service businesses. If you'd rather not post two prices, a wholesale (interchange-plus) rate is the next best lever. The honest answer is “it depends on your volume and card mix,” which is why we'll run both side by side using a recent statement — at no cost — before you change anything.
A quick buyer's tip
Want to know your real rate today? Take your total fees from last month's statement and divide by your total card volume. That single number — your effective rate — is what actually matters, and it's almost always higher than the headline rate you were quoted.
Rate figures: provider published pricing and 2026 industry guides — NerdWallet, Shopify. Always confirm current rates on each provider's site.
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