Surcharging, Dual Pricing, and Debit: The Compliance Traps No One Warns You About

Hidden fees, stacked fines, and a maze of rules—merchant pricing isn’t just a line on a receipt, it’s a legal and operational minefield. We dive into the real differences between dual pricing and cash discounting, why debit transactions should not be treated like credit, and how a simple surcharge can trigger state law violations, card brand penalties, and even deceptive practices claims. Along the way, we share field stories: demand letters over 45 cents, opaque reporting that invites abuse, and fines that stack across separate entities with common ownership.

Global Legal Law Firm team members Christopher Dryden, Leo Arzumanyan, and Jeremy Stock, unpack how dual pricing, cash discounting, and surcharging collide with card brand rules and state laws, and why debit often gets treated unfairly. We share real cases of opaque fines, stacked penalties, and deceptive practices demand letters, then lay out a practical playbook to get compliant and stay there.

• dual pricing versus cash discounting and consumer clarity
• state-by-state rules and conflicting caps
• debit costs and the “actual cost” requirement
• opaque enforcement and reporter abuse
• deceptive practices laws and demand letters
• small merchant burden and stacked fines
• technology limits in POS compliance
• a practical compliance playbook and documentation
• why proactive guidance reduces risk

We walk through a clear framework to cut through the confusion. First, understand what your state actually permits and where those permissions conflict with card brand caps. Second, build a pricing model that reflects “actual cost,” especially for debit, and make sure your disclosures are clear and conspicuous on menus, signs, and receipts. Third, pressure test your POS settings: can it identify card types and apply rules correctly, or will your “simple” setup create non-compliance at scale? Documentation, staff training, and routine audits matter as much as the pricing model itself.

Our goal is to replace guesswork with a practical playbook that reduces risk while maintaining customer trust. Whether you run a single restaurant or manage multiple entities, you’ll learn how to choose between dual pricing and cash discounting, align with the strictest overlapping standard, and prepare for scrutiny from card brands, regulators, and plaintiffs’ attorneys. If you have a story about unclear enforcement or surprising fines, share it with us—we’re collecting real-world cases to push for clarity. If this conversation helps, subscribe, leave a review, and pass it to someone who handles pricing or compliance on your team.

**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.**

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A payments podcast of Global Legal Law Firm