In the competitive retail landscape, every percentage point matters when it comes to your bottom line. That’s why we’re excited to announce that Material POS has launched Dual Pricing, a powerful new feature that allows merchants to automatically apply either credit card surcharges or cash discounts to their sales. This feature, released in February 2025, helps merchants offset credit card processing fees while maintaining transparency with customers.
What is Dual Pricing?
Dual Pricing gives merchants two options to recover credit card processing costs:
- Credit Card Surcharging: Add a small fee to transactions when customers pay with credit cards
- Cash Discounting: Offer a discount to customers who pay with cash
Both methods accomplish the same goal—offsetting processing fees—but they present different experiences to your customers.
Available Now to All Material POS Customers
We’re pleased to announce that the Dual Pricing feature is now available to all Material POS customers at no additional cost. Whether you’re a boutique clothing store, a specialty gift shop, or an independent bookstore, you can start using this feature immediately.
Easy Setup in Minutes
Enabling Dual Pricing couldn’t be simpler. The feature can be activated directly from your iPad settings screen:
- Open your Material POS app
- Navigate to Settings
- Select “Payment Options”
- Choose “Dual Pricing”
- Select your preferred method (surcharge or cash discount)
- Set your percentage (up to 3% for surcharges)
- Save your settings
Once enabled, the system automatically applies your chosen pricing model to all applicable transactions.
Important Requirements to Consider
While Dual Pricing is user-friendly, there are some important requirements to be aware of:
Processor Requirements
- Your credit card processor must support dual pricing
- Some processors require pre-approval before implementing surcharging
- Your merchant agreement should explicitly allow for these practices
Legal Considerations
- Credit card surcharging is regulated differently across states
- Several states have specific disclosure requirements
- Material POS never allows surcharges exceeding 3%, ensuring compliance with card network rules
- Proper signage at your point of sale is required in most jurisdictions
We recommend consulting with your payment processor and checking local regulations before implementing.
Pros and Cons: Which Approach Is Right for Your Business?
Credit Card Surcharging
Pros:
- Direct offset of processing costs
- Clear connection between payment choice and additional fee
- Potentially higher profit margin on credit transactions
Cons:
- May create friction at checkout
- Some customers perceive surcharges negatively
- More regulatory restrictions in certain states
Cash Discounting
Pros:
- Generally viewed more positively by customers
- Fewer regulatory hurdles
- Encourages cash payments, which have no processing fees
- Creates a sense of savings rather than an additional cost
Cons:
- May result in slightly lower profit margins
- Requires adjusting displayed prices to account for the discount
- Can complicate price comparisons with competitors
Real Results from Material POS Merchants
Early adopters of the Dual Pricing feature have reported recovering between 70-100% of their credit card processing fees, resulting in thousands of dollars in annual savings.
Start Offsetting Your Processing Fees Today
Are you a boutique or independent retailer looking to reduce the impact of credit card processing fees on your bottom line? Material POS’s new Dual Pricing feature provides a straightforward, compliant way to offset these costs while maintaining a positive customer experience.
Contact our team today to learn more about implementing Dual Pricing in your store. Our payment experts can help you determine the best approach for your specific business needs and customer base.
Email: hello@materialretail.com
Don’t let processing fees eat into your profits. Take control of your payment costs with Material POS Dual Pricing today!
