By Chris Austin, President of Ardiah

Maine businesses, particularly those in the service, retail, and hospitality industries, are always looking for ways to reduce costs, maintain profitability, and stay competitive. One increasingly popular solution is dual pricing, a transparent way to manage credit card processing fees while giving customers a choice in how they pay.

But is dual pricing the right fit for your business? Let’s dive into how it works, its pros and cons, and why industries like restaurants, salons, and auto repair shops are particularly well-suited for it.

What is Dual Pricing?

Dual pricing is a pricing model that offers two payment options:

• Cash Price – The lower, advertised price
• Card Price – A slightly higher price that includes the credit card processing fee

Rather than absorbing the 1.5% to 3.5% per transaction in credit card fees, businesses using dual pricing allow customers to choose whether they want to pay those fees themselves or save by paying in cash. Unlike credit card surcharges, which can feel like a penalty, dual pricing presents a clear choice upfront—making it more transparent and customer-friendly.

Why is Dual Pricing a Perfect Fit for Maine Businesses?

While any business that accepts payments can benefit from dual pricing, certain industries stand to gain the most:

1. Restaurants & Coffee Shops

With thin margins, every percentage point matters. The National Restaurant Association estimates that average profit margins are just 3-5%, meaning credit card fees eat into a significant portion of potential earnings. Dual pricing allows Maine restaurants, cafés, and food trucks to keep menu prices competitive while protecting their bottom line.

2. Auto Repair & Service Shops

Mechanics, tire shops, and body shops often handle high-ticket transactions. On a $1,000 repair bill, a 3% processing fee means losing $30 per transaction—which adds up fast. By offering a lower cash price, these businesses keep more revenue in their pockets.

3. Salons, Spas & Barbershops

Beauty and wellness businesses often deal with inconsistent customer traffic, making it essential to protect every dollar. Encouraging cash payments helps maintain strong revenue streams while avoiding unnecessary processing fees.

4. Retail & Specialty Stores

For small boutiques, gift shops, and outdoor retailers, credit card fees can add up over time, especially during seasonal slowdowns. Dual pricing reduces these costs while giving customers a choice in how they pay.

5. Contractors & Home Service Providers

Electricians, plumbers, HVAC specialists, and other tradespeople frequently deal with large invoices. Even a 2.5% processing fee on a $5,000 job costs them $125 per transaction—money that could be reinvested in their business.

Pros & Cons of Dual Pricing

Before making the switch, it’s important to weigh the benefits and challenges of dual pricing.

✅ Pros of Dual Pricing

✔ Cost Savings & Higher Profit Margins

• Credit card fees range from 2.5% to 3.5% per transaction, cutting into profits.
• Businesses using dual pricing save thousands annually by shifting this cost to customers who choose to pay with a card.

✔ Transparent Pricing

• Customers see the difference in pricing upfront and can make an informed decision.
• Transparency can enhance trust and customer satisfaction.

✔ Encourages Cash Payments & Improves Cash Flow

• Businesses that incentivize cash payments experience fewer chargebacks, avoid processing delays, and have faster access to their money.

✔ 100% Legal in Maine

• Dual pricing is legal in all 50 states, including Maine, as long as businesses clearly display both prices and follow guidelines.

✔ Easy to Implement with the Right System

• Ardiah provides POS and payment solutions that seamlessly integrate dual pricing while ensuring compliance.

⚠️ Cons of Dual Pricing

❌ Customer Perception & Confusion

• Some customers might feel like they are being penalized for using their credit card. 63% of consumers say they prefer shopping at businesses that accept their preferred payment method.
• To avoid frustration, businesses need clear signage and employee training to communicate the pricing difference.

❌ Implementation Challenges

• If not set up properly, dual pricing can lead to pricing inconsistencies and confusion for staff and customers.
• Ardiah ensures a seamless setup with the right technology to avoid these pitfalls.

❌ Impact on Tipping (for Service Industry Businesses)

• When customers see a higher total on their bill, they may reduce their tip amounts, potentially affecting staff earnings.

❌ Compliance Risks

• Dual pricing must be properly implemented to stay within legal guidelines. Businesses need to work with a trusted payment processing provider like Ardiah to ensure compliance.

How Much Can a Business Save with Dual Pricing?

The savings from dual pricing add up quickly, especially for businesses with high transaction volumes.

• A restaurant processing $50,000 per month in credit card payments at a 3% processing fee spends $18,000 per year on fees.
• A mechanic processing $30,000 per month in credit card payments at 2.75% saves $9,900 annually.
• A salon doing $20,000 per month in card transactions at 3% saves $7,200 per year.

By passing these costs to customers who choose to pay with cards, businesses can invest in staff, equipment, and growth instead of processing fees.

Is Dual Pricing Right for Your Business?

If your business is looking to reduce costs, stay competitive, and improve profitability, dual pricing is a smart and legal solution. However, clear communication and proper setup are essential for success.

At Ardiah, we help Maine businesses implement dual pricing the right way—ensuring compliance, seamless integration, and full transparency for customers.

🔹 Want to learn more? Contact Ardiah today for a free consultation and see how dual pricing can benefit your business!

Chris Austin