Ever noticed how nearly every gas station has two prices—one for cash and one for credit? If gas stations can pass on the cost of card processing, why don’t more businesses do the same?
The short answer: They should.
The Truth About Credit Card Fees
Every time you swipe your card, the business you’re buying from has to pay a percentage of the sale—often 2-4%—to the card companies. For a small business with tight margins, that’s a huge hit. But while gas stations have normalized passing that cost onto customers, most other businesses still absorb it, cutting into their profits.
Why? Because for years, business owners have been conditioned to believe they have to eat the cost. That’s simply not true anymore.
Dual Pricing: Not Just for Gas Stations
More and more businesses are waking up to the fact that they can structure pricing the same way gas stations do. With dual pricing, customers see both a Card Price and a Cash Price, giving them the choice. Those who pay with cash get the lower price, while card users cover the cost of processing their own transaction.
This isn’t a surcharge. It’s not a fee tacked on at checkout. It’s a simple, upfront choice—just like at the gas pump.
The Big Question: Why Pay for Someone Else’s Rewards?
When customers use a rewards credit card, someone has to pay for those points, miles, or cash back. Who is it? The business. By absorbing processing fees, merchants are essentially subsidizing bank perks for their customers—while watching their own profits shrink.
Gas stations figured this out long ago. They made it normal. Now, other industries are catching up.
What’s Holding Businesses Back?
For many, it’s just a lack of awareness. Some fear customers will push back, but the truth is, consumers have already accepted this model at gas stations, and they’re more open to it than ever before. Plus, with rising costs everywhere, business owners need to protect their margins more than ever.
It’s Time to Change the Norm
The days of absorbing credit card fees should be over. Gas stations proved it works. Your business can, too.
Ready to stop paying for your customers’ card perks? Let’s talk about dual pricing.
