The processing method zero-fee refers to the business where a business can process credit card payments without paying the credit card processing fee.
Customer pays credit card processing fees instead of your business. The charges vary but they can not be above 4%.
The terminal will notify them of the fee after the customer swipes their credit card and it will give them a chance to accept or use a different form of payment. You will get 100% of the sale when the customer covers the fee.
Associated with processing credit cards, as a retailer zero fee credit card processing generates a significant reduction in cost.
The method is known as surcharging the credit cards and if one passes the processing fees to the consumers there will already be an option that one can select regardless of the credit card processor.
The surcharging is allowed in almost all the nine states of the United States, as the criteria are met to a certain.
Benefits of Zero fee Credit Card Processing
There are a bunch of benefits of zero-fee credit card processing. With zero fees you can avoid hefty monthly fees for using your merchant account services.
It also allows you to invest more into your business if you are strapped for cash. Also you can set the pricing of the service and the product that fits your needs.
Security is ensured and all the sensitive data remains with the provider rather than being stored. Most businesses use this service to avoid fraud and to ensure that their company would not be responsible for invalid dues.
It is so easy to get started as many companies do not lock you in long-term agreements and don’t have any upfront costs. So it is really easy to get started.
Considerations before you Deploy Zero fee Credit Card Processing.
The cost of processing transactions for your customers can be shifted by the surcharging programs, and you will still pay fees.
In addition, the monthly fee for the addition of surcharges to your card might also be charged. So evaluate carefully that this won’t cost you more. Businesses with a high credit card monthly volume work better with zero-fee credit card processing.
You must have to provide adequate notice to surcharge your credit card users that they will be extra charged. Once your customer realizes that their purchase will incur an additional fee.
The surcharges can only be applied to credit card transactions and it is important to note. Making a customer use their debit card might result in overall low processing costs.
Consider the advantages and disadvantages before choosing a no-fee processing program. And of course, you surely wanted to weigh the savings in credit card expenses against the loss.
Last to say is zero fee credit card processing for you give it a shot.