Dual Pricing Isn’t Just for Retail: How Manufacturers Can Protect Margins Without Raising Prices
When most people think of dual pricing, they picture gas stations or small-town diners with signs offering a “cash discount.” But what’s often overlooked is how this same concept can benefit manufacturers, distributors, and B2B businesses—especially those operating on tight margins.
In today’s landscape of rising processing costs, inflation, and squeezed budgets, manufacturers are leaving money on the table by absorbing fees they don’t have to.
What Is Dual Pricing, Really?
Dual pricing is a transparent pricing model that shows two prices: one for cash (or non-card) payments and another for credit card transactions. The card price includes the cost of acceptance—without having to bake those fees into your baseline prices.
This isn’t a surcharge or “extra fee” tacked on after the fact. It's a clear way to give customers a choice while protecting your margins.
Why This Matters for Manufacturers and Distributors
Most manufacturing businesses either:
Absorb the 2–3.5% processing fee every time a customer pays by card
Avoid taking cards entirely, relying heavily on checks or ACH
But both options have problems. Absorbing the fees cuts into profit. Avoiding cards limits payment flexibility—and slows down cash flow when customers delay sending checks.
With dual pricing:
You get paid faster
You don’t eat the processing cost
You don’t need to raise your base pricing
You gain payment flexibility without compromising your margins
This is especially useful if you:
Have field sales reps or online orders
Want to offer card payment as a convenience
Sell directly to businesses or government accounts that prefer to use purchasing cards (P-Cards)
Is It Legal for B2B?
Yes. Dual pricing is legal in all 50 states when done correctly. For manufacturers, it can be implemented via:
Online payment links or hosted invoices
Smart terminals for trade counter or walk-in customers
Payment buttons on emailed quotes or QuickBooks invoices
The key is to follow compliant practices—something most processors won’t guide you through correctly.
How Much Could You Save (or Make)?
Let’s say your company does $3M in card volume a year. If you’re absorbing a 2.9% blended rate, that’s $87,000/year out the door.
With dual pricing, those fees are built into the card price—and customers still have the option to pay by ACH or check if they prefer.
Even if just 60% of customers continue paying by card, your business could retain $50,000+ in margin annually—without touching your base pricing.
Dual Pricing Paired With Level 2/3 Optimization = Serious Margin Protection
Many B2B transactions qualify for lower interchange rates—if your system is set up correctly. Dual pricing helps recover margin; Level 2/3 optimization helps reduce cost. Together, they form a backend strategy that most processors won’t offer, but every manufacturer should be using.
Final Thought:
You invest in optimizing materials, labor, and logistics. Why not optimize payments too?
With the right setup, manufacturers can turn payment acceptance from a cost center into a competitive advantage—without adding friction or complexity.