If you run a home services business, you’ve probably looked at your monthly payment processing statement and felt that sting in your gut. Processing fees can chew up thousands of dollars a year, and most owners just accept it as the cost of doing business.
It doesn’t have to be that way.
Many of the most profitable HVAC companies, plumbers, electricians, and landscapers are quietly using dual pricing to stop giving that money to payment processors and keep it in their own pockets.
What is Dual Pricing?
Dual pricing simply means offering two prices for the same job: one if the customer pays with a card and a lower price if they pay with cash, ACH, or check. Instead of absorbing 2.75% to 3.5% in credit card fees, you present both prices upfront. The customer chooses which they prefer, and the card price already has the cost of acceptance built in.
It’s legal in most states as long as both prices are shown clearly before the sale is finalized. And because it’s framed as a discount for paying with cash rather than a penalty for using a card, most customers accept it without much pushback.
Why It Works in Home Services
In home services, you’re already quoting jobs before you do the work. Unlike a retail store where pricing is fixed on shelves, service quotes are prepared one-on-one. That makes it simple to show two prices right on the proposal or invoice.
Example:
Card price: $2,580
Cash/ACH price: $2,500
If the customer uses a credit card, you’re covered for the processing fee. If they pay with ACH or cash, they get a discount and you keep the full amount without paying interchange fees.
The Math Behind the Savings
Let’s say you run $1M a year in revenue, and 30% of your customers pay with a credit card at an average 3% fee.
That’s $300,000 x 3% = $9,000 in fees per year.
Dual pricing lets you pass most or all of that cost directly to card-paying customers. You keep that $9,000. Over five years, that’s $45,000, enough to hire another tech, buy a new truck, or invest in marketing.
Why It’s Fair to the Customer
Some people think passing along credit card fees is unfair to the customer, but if you look at where that 3% actually goes, the opposite is true. A large portion of it,often up to half,funds cardholder perks like cash back (sometimes as high as 1.5%), airline miles, and interest-free financing.
That means every time you pay those fees on behalf of a card-paying customer, you’re effectively funding their rewards program and giving them free credit. If they want those perks, they can choose the card price.
On the other hand, if they want to save money, they can choose the ACH price. Modern payment tools make ACH just as convenient as card payments, with instant bank linking and one-click setup that’s as simple as entering a card number. When customers see both options laid out clearly, they get to decide what’s worth more to them,points or savings. That’s a fair deal for everyone.
Talking to Customers About It
Some owners worry that dual pricing will upset customers. If you explain it the right way, it’s a non-issue.
Here’s a simple way to say it:
“We offer two prices,one for cash or ACH, and one for credit card payments. The difference just covers the processing fee charged by the card companies. This way, we can keep prices fair for everyone.”
You’ll be surprised how many customers choose ACH or check once they see they can save money, especially on larger invoices.
Making it Easy
The key is making the process simple for both customers and your team. Show both prices on quotes and invoices automatically. Offer ACH payment links so customers can pay online without writing a check. Train your team so they can explain the difference in under 20 seconds without awkwardness.
This is where having the right software matters. With MX Build, for example, dual pricing is built right into the payment flow. You don’t have to manually calculate or explain, it’s all there, clear and compliant.
The Bottom Line
The most profitable home services companies aren’t just working harder, they’re working smarter about plugging the small leaks in their business. Payment processing fees are one of the biggest leaks, and dual pricing is one of the easiest fixes.
If you’re still absorbing those fees yourself, you’re leaving money on the table. Make the switch, keep that money in your business, and let the card companies help fund your next growth move instead of eating into your margins.
