Consumer Choice Pricing vs. Surcharging Consumer Choice Pricing Is Not a Surcharge
Give customers a clear payment choice without adding a surprise fee at checkout.
Consumer Choice Pricing allows a merchant to establish a cash price and a card price before the customer chooses how to pay.
A surcharge works differently. It begins with an advertised price and adds a separate charge because the customer uses a particular payment method.
The difference is not simply what the program is called. It depends on how prices are displayed, calculated and processed.
How Consumer Choice Pricing WorksConsumer Choice Pricing can be presented in two ways:
Display Both Prices
The merchant displays the complete cash and card prices before payment.
| Payment option | Displayed price |
|---|---|
| Cash price | $97.00 |
| Card price | $100.00 |
The customer selects a payment method and pays the corresponding displayed price. No fee is added at checkout.
Advertise the Card Price and Offer a Cash Discount
The merchant may advertise the complete card price as the regular price and offer a disclosed discount to customers who pay with cash.
| Transaction | Amount |
|---|---|
| Advertised card price | $100.00 |
| Cash discount | -$3.00 |
| Cash customer pays | $97.00 |
| Card customer pays | $100.00 |
The discount may be calculated at checkout, but it should be communicated before the customer authorizes payment.
Visa’s published guidance permits merchants offering a cash discount to display either the card price alone or the cash and card prices side by side. The final card total should come from the displayed prices—not from adding a card fee at payment.
The card price applies consistently to all accepted card payment types.
Consumer Choice Pricing vs. Surcharging
Payment option |
How it works |
|---|---|
| Consumer Choice / Dual Pricing | Complete cash and card prices are established before payment |
| Advertised Card Price With Cash Discount | The card price is advertised and cash customers receive a discount |
| Credit Card Surcharge | A separate charge is added to eligible credit card transactions |
| Debit Card Surcharge | A separate charge is added because the customer uses a debit card |
A receipt description such as “service fee,” “processing fee” or “non-cash adjustment” does not determine the pricing model. The actual pricing and checkout process are what matter.
Louisiana Act 751
Effective August 1, 2026, Louisiana Act 751 prohibits retail businesses from imposing a surcharge on customers who use a debit card. The law defines a surcharge as an additional amount imposed at the time of the transaction that increases the customer’s charge for using a debit card.
A debit card remains a debit card even when the customer selects “credit” at the terminal or completes the transaction without entering a PIN. Visa also prohibits surcharges on debit and prepaid cards.
Act 751 does not expressly prohibit a genuine cash discount or properly disclosed Consumer Choice Pricing. However, the law does not provide a specific safe harbor for programs described as dual pricing or Consumer Choice.
Merchants should focus on how the program actually works:
- Is the complete card price disclosed before payment?
- Is the cash discount clearly communicated?
- Is a fee added after the customer presents a card?
- Do the signs, menus, invoices, terminal and receipts all match?
Merchant Pricing Review Checklist
Pricing Displays
Are the complete cash and card prices disclosed before the customer chooses how to pay?
Advertised Card Price
When only one price is advertised, is it the complete card price?
Cash Discount
Is the cash discount clearly disclosed and actually deducted from the advertised card price?
Point-of-Sale Configuration
Does the system charge an established card price, or does it add a separate amount to a lower advertised price?
Card Treatment
Does the Consumer Choice card price apply consistently to all accepted card payment types?
Surcharge Controls
When the merchant operates an actual credit card surcharge program, can the system reliably exclude debit and prepaid cards?
Receipts
Do the receipts accurately reflect the pricing model being used?
Signage and Menus
Do the signs, menus, shelves, invoices, estimates and online price displays match the terminal pricing?
Employee Training
Can employees accurately explain the cash price, card price, cash discount and surcharge?
State Requirements
Has the merchant reviewed the requirements applicable to every state in which it operates?
Frequently Asked Questions
Does Louisiana Act 751 ban Consumer Choice or dual pricing?
Act 751 does not expressly ban Consumer Choice Pricing, dual pricing or bona fide cash discounts.
It prohibits an additional amount imposed at the time of a transaction that increases the customer’s charge for the privilege of using a debit card. Whether a specific program complies depends on how the prices are established, disclosed and processed.
Does the Consumer Choice card price apply to every card type?
The card price should apply consistently to all accepted card payment types.
Consumer Choice Pricing is based on the customer selecting between an established cash price and an established card price. It is not limited to one specific type of card.
Can a merchant advertise the card price and apply the cash discount at checkout?
Yes. The merchant may advertise the complete card price and calculate the disclosed cash discount when the customer selects cash at checkout.
The opportunity to receive the cash discount should be communicated before payment, and nothing should be added when the customer uses a card.
Visa’s published guidance allows merchants offering a cash discount to display only the card price per item or to display the card and cash prices side by side.
Can a merchant display both the cash and card prices?
Yes. Displaying the complete cash and card prices side by side is one of the clearest ways to communicate Consumer Choice Pricing.
The customer chooses a payment method and pays the corresponding displayed price.
Is a sign at the register enough?
A sign can help explain the program, but relying only on a general sign may create risk when the applicable prices are not otherwise disclosed.
The complete card price should be available through the merchant’s applicable menus, shelves, price lists, invoices, estimates or checkout screens before payment.
Can a merchant call an added charge a service fee or non-cash adjustment?
Changing the name does not necessarily change the nature of the charge.
If an additional amount is imposed because a customer uses a debit card, it may still be treated as a debit card surcharge.
Can a merchant surcharge a debit card when the customer selects “credit”?
No. Selecting “credit” does not change the debit card into a credit card. Visa expressly states that a Visa debit card cannot be surcharged even when the customer selects “credit” at the terminal.
Can Louisiana merchants still surcharge eligible credit cards?
Louisiana Act 751 specifically addresses debit card surcharges. It does not independently prohibit all eligible credit card surcharges.
However, any credit card surcharge must comply with applicable state law, card-brand rules, disclosure requirements, surcharge limits and processor requirements.
Does this apply to online and telephone transactions?
The same underlying pricing distinction remains important.
Customers should receive the complete applicable price before being asked to authorize the payment.
Who is responsible for ensuring the program is configured correctly?
Merchants should work with their processor and point-of-sale provider to confirm how their pricing, equipment, receipts and disclosures operate.
A merchant should not assume that a program complies merely because it was installed or configured by another company.
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