Stay Compliant & Profitable: The Case for Dual Pricing in New York & New Jersey

Running a business in New Jersey or New York comes with its fair share of challenges—high operational costs, increasing credit card processing fees, and shifting regulations. To stay competitive and maximize profits, more merchants are turning to dual price processing as a solution that provides cost transparency while protecting margins.

What Is Dual Price Processing?

Dual price processing is a pricing model where merchants display both a cash price and a card price for their goods or services. This gives customers a choice: pay the lower price in cash or cover the processing costs when using a credit card. Unlike traditional surcharge programs, which add a fee on top of the transaction, dual pricing presents clear pricing upfront, ensuring compliance with both state and federal regulations.

The Legal Landscape in New York and Beyond

The legal framework around credit card surcharges has been evolving, particularly in New York and California. Historically, both states banned surcharges outright to protect consumers from deceptive pricing. However, a pivotal Supreme Court case, Expressions Hair Design v. Schneiderman (2017), ruled that such laws regulate commercial speech, prompting a shift in state policies.

In 2023, New York General Business Law Section 518 was amended to replace the surcharge ban with a requirement that businesses post the total price for credit card transactions, ensuring consumers see the final cost upfront. Similarly, California Senate Bill 478, which took effect in July 2024, mandates that advertised prices must reflect the full charge, including any surcharges.

These legal changes place a greater burden on merchants to ensure compliance. Violations of New York’s Section 518 can result in fines of $500 per instance, while California’s SB 478 carries penalties of $1,000 per instance. As other states, such as Minnesota and Illinois, explore similar regulations, businesses must stay informed to avoid costly compliance missteps.

Why Merchants in New Jersey and New York Are Making the Shift

Regulatory Compliance and Transparency Both New Jersey and New York have historically had strict guidelines surrounding credit card fees and pricing structures. Dual price processing is designed to remain compliant with regulations by presenting clear, upfront pricing to consumers.
Reducing Payment Processing Costs Credit card processing fees can eat into profit margins, especially for small businesses. By adopting dual pricing, merchants can offset these costs without raising prices across the board.
Avoiding Legal Pitfalls of Surcharging With New York’s updated laws requiring businesses to post the total price for credit transactions, many merchants are pausing surcharging practices to avoid potential fines and compliance issues. Dual price processing offers a compliant alternative that shifts costs transparently while keeping businesses legally protected.
Enhancing Customer Trust Transparency in pricing fosters trust with customers. By showing both cash and card prices, businesses demonstrate honesty in their pricing strategy, allowing customers to make informed decisions.
Competitive Advantage With dual price processing, merchants can keep their cash prices lower than competitors who factor card processing fees into their base prices. This can encourage more cash payments and help retain cost-conscious customers.

How SignaPay Direct Helps New York and New Jersey Merchants

At SignaPay Direct, we specialize in helping businesses implement dual price processing seamlessly. Our solutions provide:

Compliant Pricing Displays – Ensuring merchants follow state regulations with proper signage and disclosures.
Advanced Payment Technology – Terminals and POS systems designed to handle dual pricing effortlessly.
Merchant Support & Training – Guidance on best practices for implementing and managing dual price processing.

Future-Proofing Your Business with Dual Price Processing

With rising operational costs and evolving regulations, businesses in New Jersey and New York must find ways to remain profitable while offering fair and transparent pricing. Dual price processing provides a strategic advantage by reducing payment processing expenses and fostering customer trust.

As federal agencies like the FTC introduce broader rules on junk fees and pricing transparency, a national standard may emerge that reshapes surcharge regulations even further. For now, merchants should prioritize compliance at the state level while adopting cost-effective pricing solutions like dual price processing.

Are you ready to make the switch? Contact SignaPay Direct today to learn more about how dual price processing can benefit your business.