Green Sheet interviews Kurv's Nick Bencivenga

As payment processing costs continue to rise, small and midsize businesses are rethinking how they manage and recover those expenses. What was once treated as a routine cost of doing business is now a more visible pressure on already thin margins, prompting merchants to explore strategies such as dual pricing, surcharging and cash discounting.

In this Q&A, Nick Bencivenga, vice president of sales at Kurv, discusses how shifting economics, growing awareness and evolving regulations are driving broader adoption of these models, and what merchants need to consider as they balance transparency, customer trust and profitability.

Green Sheet: Merchants have been vocal and advocating for years about their payment processing costs. What’s different about the current moment that’s pushing more SMBs to actively rethink how they handle and recover those costs?

Nick Bencivenga: There’s more cumulative pressure now. Costs have stacked across labor, inventory, and operations. Processing fees aren’t a “background expense” anymore. For SMBs that operate on thinner margins, a 2-4% card fee could erase the profitability on a transaction.

Recent reporting that shows card fees creeping onto restaurant tabs highlights how restaurants specifically are actively introducing dual pricing and surcharges as fees rise sharply, some up more than 70 percent since COVID. At the same time, surcharging is no longer fringe; studies show that about 35 percent of SMBs already apply these fees.

At the same time, though, there’s greater awareness and normalization of cost-recovery models like dual pricing and cash discounting. These weren’t as widely understood or even accepted until a few years ago. 

GS: You mentioned that customers tend to accept small pricing differences when they’re clearly communicated—what does good transparency look like in practice at the point of sale?

NB: Transparency that’s simple, visible, and consistent is what customers are looking for because they are especially sensitive to hidden fees . They should be aware of what they’re paying and what their options are, whether it’s clearly posted pricing or a dual-price display. SMBs have to remove the surprise factor at checkout.

When a customer understands, “this is the cash price, and this is the card price,” they can make a quick decision. This clarity will build trust because it signals the merchant isn’t trying to hide anything; it’s more like giving the customer a choice.

GS: Dual pricing is gaining traction as a way to manage costs. How are SMBs implementing it without confusing customers or damaging trust?

NB: The most successful SMBs are treating dual pricing as a communication exercise with their customers, presenting both prices clearly side by side with a short, consistent message communicated by staff and signage.

Customers will already be familiar with this model in environments like gas stations, so it won’t feel too foreign to them when implemented correctly. The key is consistency in messaging from the door to the register and receipts. 

GS: There’s still a perception that adding fees risks losing business. What data or real-world experience are you seeing that challenges that assumption?

This fear is often bigger than the reality. Some customers do react, and a third of merchants do see some cancellations. The same research shows that surcharging is continuing to grow, which wouldn’t happen if it were broadly damaging.

Some data frames these trends as a double-edged sword but confirm it’s now a mainstream strategy for offsetting costs. Customers won’t typically abandon their purchase; they’ll just change how they pay.

Most merchants are able to perform a simple cost-benefit analysis. Perhaps one or two customers may shop elsewhere in a given month, based on the decision to utilize dual pricing. But are two customers per month worth forgoing thousands of dollars in processing fee savings?

Every business is different, so the answer could be "yes" - but typically, most SMBs don't have this issue. Usually, any lost revenue from a customer choosing not to shop is vastly offset by the reduction in processing fees.

GS: With 70 percent of SMBs reporting that rising costs are affecting operations, how are merchants balancing the need to protect margins with the risk of pricing themselves out of competitive markets?

NB: This comes down to control and flexibility. Instead of raising prices across the board, merchants use targeted approaches like dual pricing to protect their margins without appearing more expensive than their competitors. They can maintain a competitive “entry price” while still recovering costs when customers choose different payment methods.

It’s a nuanced strategy that gives merchants the ability to adapt based on their customer base and industry, turning fixed costs into managed ones.

GS: As state regulations around surcharging and pricing disclosures continue to evolve, what should SMBs be paying closest attention to in order to stay compliant while still managing costs effectively?

NB: The biggest priorities are clarity, consistency, and understanding the rules that apply to each model. Surcharging, in particular, comes with stricter requirements, such as caps and limitations on debit transactions, so merchants need to be precise in their implementation. Dual pricing and cash discounting tend to offer more flexibility, but they still require clear disclosure to customers.

The safest approach is to choose a model that aligns with both the business and the regulatory environment, then execute it transparently. That’s why it’s so important to work with a payment provider who has a deep understanding of the regulatory landscape so that they can guide you through that process.

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