Cash Discount & Dual Pricing Calculator
Transparent dual pricing displays cash prices alongside standard card prices. Cardholders cover card interchange while cash diners enjoy an immediate reward. Calibrate your baseline parameters below to calculate live bottom-line results.
Adjust non-cash adjustment rates and churn sensitivity. Live annual profit expansion and guest receipts update below.
Program Parameters & Sensitivity Testing
Live AdjustmentAbove 3%: cash discount or dual pricing only. If you run this as a credit card surcharge rather than a cash discount, card brands cap it (Visa at 3% since April 2023), and some states restrict surcharging. Check your state's rules first. What's the difference?
Some guests will switch to cash to avoid the adjustment. Enter your own estimate.
Simulates margin drag if sensitive patrons order less or dine elsewhere.
Step 2: Live Calculated Profit Lift & Receipt Folio Impact
Dynamic Real-Time OutputDual Pricing Economic Sensitivity Model
Net annual earnings breakdown factoring technology software and customer elasticity
Card fees on remaining card sales are covered by the adjustment
POS terminal dual-pricing firmware & monthly gateway license
Estimated gross contribution lost if 0.5% of guest traffic churned
Money you keep, added straight to profit
Even with an aggressive 0.5% decrease in guest sales, your operation would STILL finish ahead by $25,932/year. Because food and beverage margins are tight, eliminating interchange fees produces overwhelming mathematical leverage.
Guest Check Transparency Preview
Example receipt formatTABLE 12 • 2 GUESTS
Order #1042 • 7:42 PM
★ Cash savings: $3.35 applied at settlement
Compliance & Best Practices
How to use this calculator
This calculator shows what a dual pricing (cash discount) program could do to your card fees and profit, including the program’s own fees and the risk of losing some guests.
- Set the price difference between paying by card and paying cash.
- Estimate how many card guests might switch to cash.
- Stress-test guest pushback: the share of card sales you might lose if some guests go elsewhere.
- Check the net gain per year, then check your state’s rules and your processor’s rules before you change prices.
What’s a good number?
Visa caps credit card surcharges at 3%, and debit cards cannot be surcharged. Some states restrict surcharges and card brands set their own notice and signage rules, so the right number is the one that is allowed where you are.
A program is only worth it if the net gain stays positive after program fees and some lost guests. Try a higher pushback figure to see how much room you have.
Source: Visa surcharging rules (cap lowered to 3% in April 2023).
Worked example
An example restaurant paying 3% of its card sales in fees. The figures are invented; the results are what this calculator gives for them.
| Card sales per month | $60,000 |
|---|---|
| Card fees per month | $1,800 |
| Card price difference | 3% |
| Card guests switching to cash | 10% |
| Card sales lost to pushback | 1% |
| Card fees per year today | $21,600 |
|---|---|
| Card fees you would still pay | $583 |
| Program fees per year | $1,920 |
| Profit lost to pushback | $4,896 |
| Net gain per year | $14,201 |
Even after program fees and losing 1% of card sales, this example keeps about $14,201 a year. Losing more guests shrinks that quickly.
Common questions
What is the difference between dual pricing, surcharging and a cash discount?
A surcharge adds a fee to card payments. Dual pricing shows two prices, one for cash and one for cards. A cash discount lowers the price for cash. They are treated differently by card brand rules and some state laws.
Is dual pricing legal?
It depends on your state and the card brands’ rules, which set caps, notice and signage requirements, and debit cards cannot be surcharged. Check your state law and your processor’s rules, and ask a lawyer if unsure.
Will guests mind paying more by card?
Some may. Clear menus and signs help. Use the pushback setting to see how much business you could lose before the program stops paying for itself.
Every formula and assumption is on How we calculate.
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Net gain / year
$25,932
Per month
$2,161