The invisible costs that a business enterprise would face which allow the usage of credit cards for business deals are the charges incurred with the credit cards processing. It is the negation of zero cost credit card processing. However, the question is how the processing charges can be avoided? These charges may be any of the transaction processing fees, the charges for the business deal conducted and for the inter banks switching fees. Instead of waiving credit card fees most of the banks also impose charges if you demand a printed copy sent to you. Further, the charges for terminal utilization are also imposed. For saving this cost in business transactions zero fee credit card processing is desirable for any business concern.
The terminal utilization fee is the interbank charges imposed between the banks for the business deal conducted. These charges for a transaction conducted are sure to be charged for the enterprise which is conducting its transactions through credit cards.
A firm can conserve on the invisible costs by looking for the most suitable way around. It will help in confirming that the processor will be reluctant and will not impose monthly charges for the utilization of the terminal. Zero cost credit card processing is the desire of every business to cut short its expenses. Further, to overcome the cost of receiving a printed copy through the mail, the alternate procedure of taking a print from an online portal should be looked for. It will reduce the cost to some extent.
One must be conscious of the fact that a lot of agreements are liable to impulsive continuation without any further agreement between the business using the terminal and the provider of the terminal. The terminal provider will come with the previous agreement as the extension of the tenure agreed and most likely he will try to increase the charges as well. If you monitor every monthly account statement comprehensively you are supposed to find the increase otherwise it is most probable that the added charges will go unconsidered. It is most likely that nearly 95% of firms are unable to find out the mechanized continuations. However, the zero fee credit card processing remains the unfulfilled desire of every business using credit cards for transactions.
If we want to arrive at the real cost of making transactions using credit cards the charges incurred will be near about 5% of the business deal. Currently, it is not in consideration to waive credit card fees by the companies. It is general practice for most restaurants that the daily revenue obtained through credit cards is something more or less $2,000. If we calculate it in yearly terms this amount exceeds $700,000. Keeping in view this large amount of revenue, zero fee credit card processing is desired. The processing charges are the only charges of all the above-mentioned which can be discussed with the terminal provider to arrive at a suitable rate.
No company has offered zero cost credit card processing up till now. However, one of the mainstream companies has initiated a zero processing charges for life scheme; it will boost up the industry as it will reduce the credit card processing charges up to 50%. It can be considered a step towards waiving credit card fees by the companies. It is suggested to the restaurant industry that management officials should have a close eye on the charges of the current terminal provider and take the opportunity of zero processing rate to lower the expenses.