Why is Dial M for Murder in color and not Psycho.?

There are a number of reasons why Hitchcock may have chosen to use black-and-white for his film "Psycho" (including budget issues or a desire to imitate the 1954 French thriller "Les Diaboliques"), but the most likely one is because he believed that the shower scene would have been too gory in color.

I found out this information by using my library's access to Film Indexes Online (which direct you to authoritative sources on film). When I performed a search I was directed to a number of indexes and chose AFI (American Film Institute) Catalog simply because it came first. It offers encyclopedic information on the film, including this quote:

"Hitchcock later stated repeatedly that he used black and white because color film would have made the shower sequence too gory."

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Alfred Hitchcock's choice. One of the reasons it's said that he chose to go for black & white for Psycho was to keep the costs lower, & probably looking to see it's success on a lower budget on what he knew would be a hit

Psycho was lower budget, funded entirely by Hitchcock himself with personal money and a lot of loans, so he decided, for cost reasons more than style, to forego expensive color film and stick with black and white.

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Dial M is probably colorized. Pyshco is considered art, and is protected from being colorized. Same as Citizen Kane.