Businesses can process credit card payments using a processing method known as "zero-fee" without having to pay any processing fees. The processing fee for credit cards is paid by the customer, not by your company. Regardless of the processor, the fees cannot exceed 4%. The terminal will inform the customer of the fee after they swipe their card and give them the option to accept or use a different payment method. It's that simple: you receive 100% of the sale once the customer pays the fee.

"Zero-fee" processing significantly lowers the cost of processing credit cards for retailers. If you pass on your processing costs to customers, it is known as surcharging credit cards, and it is already a choice you have, irrespective of your choice of credit card processor. Surcharging is permitted in every state in the union, with the exception of nine.

Numerous industries, from gas stations and cell phone providers to healthcare and nonprofits, have found success with zero-fee processing and continue to give their customers the choice of selecting the most practical card payment method.

Advantages of Free Credit Card Processing

Processing credit cards at no cost has many advantages for your company. It can, among other things, assist you in avoiding expensive monthly charges for using your merchant account services. Zero credit card processing fees also enable you to reinvest more of your profits in your company if you're short on cash. Additionally, you are free to modify the cost of your good or service to suit your requirements.

It may also offer more security than other options because it guarantees that all sensitive data stays with the provider rather than being kept on external storage devices like mobile devices or internal servers. To avoid fraud and make sure their business is not held liable for erroneous charges, many business owners use free credit card processing.

It's simple to get started because many businesses don't require you to sign a binding long-term contract or pay for equipment up front.

Considerations to Make Before Implementing Free Credit Card Processing

The cost of processing transactions may be passed along to your customers through surcharging programs, but you will still be responsible for paying fees, such as a variety of ongoing and one-time merchant account fees. You might additionally be charged an extra monthly fee for adding surcharges to your card.

Check carefully to make sure the price isn't higher than it would have been without the surcharge program. For instance, implementing a program for free credit card processing is ideal for companies that process a lot of credit cards each month. However, if your company uses credit cards infrequently, charging might not be a good idea.

Users of credit cards must receive adequate notice that a surcharge will apply before you can do so. The biggest drawback is that once your customers realize their purchase will involve additional costs, you'll lose sales from your website or store. Make sure your company has a strategy in place for luring in new clients and keeping existing ones once they start paying you 3-4% more.

Before you surcharge, research what your rivals are doing. If they aren't, you'll be at a disadvantage in the market, which ultimately means less profit than if you decided to pay the processing fees yourself. Consider this when deciding whether to implement a free credit card processing program because customers can now purchase goods and services with more ease than ever before thanks to the Internet.

As a result, customers should think about paying with cash or a debit card instead, which could result in lower processing costs overall. It's important to note that surcharges can only be added to credit card transactions. The fact that many consumers take advantage of credit card reward programs while others never carry cash means that fees won't be completely eliminated. These fees are likely to deter customers of this type from visiting your store in the first place.

Think about the benefits and drawbacks before selecting a no-fee processing program. In the end, the only way to know is to give it a try. Of course, you'll want to balance savings in credit card expenses against lost sales or irate clients.