Differential pricing lets you charge slightly different amounts depending on how a customer pays, so you can offset your card processing fees. Material POS supports three programs:
Only one program can be active at a time.
| Credit Card Surcharging | Dual Pricing | Cash Discounting | |
|---|---|---|---|
| Applies to | Credit cards only (never debit or prepaid cards) | Credit and debit cards | Cash payments |
| The price in your POS is | Your everyday price | The cash price | The card price |
| What the customer sees on the receipt | A separate "Surcharge" line item | Just the price for how they paid — no fee or discount line | A separate discount line item |
| Maximum percentage | 3% | No cap | No cap |
| Where it's allowed | Prohibited or restricted in some states (for example CT, ME, and MA) | All 50 states | All 50 states |
| Signage required | Yes — at the store entrance and register | Both prices shown on tags, or signage at the register | A simple disclosure such as "We offer a 4% discount for customers paying with cash" |
Say an item costs $100 and your rate is 4% (3% for surcharging, the maximum allowed):