Zero-Fee or No-Cost Credit Card Processing: The New Normal of Payment Transactions

The payment processing industry is evolving. Customers are increasingly demanding more versatile ways to pay at the checkout counter. Simultaneously, they are also expecting a more convenient and faster service. Your business needs a POS system and payment terminals that are able to keep up with today’s consumer preferences. This requires innovative equipment and the latest software. (https://zerochargeprocessing.com)

What Is a No-Cost Credit Card Processing?

Zero-fee credit card processing is a processing method wherein credit card processing fees are being transferred directly to the customers. Eliminating up to 100% of your credit card processing fees.

On the contrary, surcharging credit cards is the process of transferring credit card processing fees to the customers. This has been an option that is available to choose regardless of who the credit card processor is. In the U.S. surcharging is possible with a set of requirements, except for 9 states.

While zero-fee credit card processing is possible with conventional processors, some companies still try to make money from it. Meaning, the processor will handle the work of surcharging for you.

Differences Between Surcharging and No-Cost Processors

• You can surcharge customers with almost any conventional processor. However, you need to work with your processor and handle parts of the set up yourself. Your processor shall reprogram your terminal to list surcharges as a separate line on receipts, as well as ensure that only credit transactions are being surcharged for the correct amount. You are responsible for informing Visa and MasterCard of your intent to surcharge, as well as showing a proper banner stating that your business surcharges.

• With a zero-fee processor, the company will generally handle the process of the set up except for displaying a banner. The major difference is that the no-cost processor handles notifying the card brands on your behalf, saving you the effort and time of filling out the forms yourself. Also, the equipment is most likely already pre-programmed for the surcharging.

What Does A No-Cost Processing Cost Customers?

• The charges vary by processor, but will not be more than 4%.
• Dynamic Payment Systems, a company that advertises free credit card processing, charges a 3.45% flat fee rate for each credit card transaction. You can either pass this rate surcharge directly to customers or surcharge it to cover additional monthly fees.

Lessening Credit Card Processing Fees

• To lower your credit card processing fees, it’s important to ensure that the credit card equipment is running to avoid manually inputting card information, which leads to higher costs. This also lessens the risk of fraud and chargebacks from the issuing bank.
• Instead of transferring fees to customers, you can urge a purchase limit for credit card usage- only allowing credit card payments for purchases above $15 for example. This method can possibly lead to upselling customers who might have spent less. It also prevents you from paying fees on low-margin, low-value transactions which could bankrupt your business in the long run.
• As a business owner, you would have to host important decisions to make on a daily basis. Choosing the right POS System to incorporate with your business will truly affect your day-to-day operations and the way your customers interact with your brand – Choose the right Merchant Processing Company for you!

Will your business benefit with the New Normal of Payment Transactions? Let us help you! Visit https://zerochargeprocessing.com or Email us your contact details at jerienne@tncllc.net and we’ll get back at you as soon as we can.