What is Zero Processing Fees program that proclaims no processing fees to accept credit cards in your business? You may remember seeing this practice at gas stations across the country. Where they list a gas price for cash and for credit cards. This practice has been in place for decades. The current economic climate has pushed business owners into finding ways to reduce their costs and overheads. Today cardholders understand there is a cost to accepting credit cards. They are accustomed to fees when using popular apps such as Venmo, Cash App and Pay Pal. When a small business decides to go with a program that passes the fee along to the cardholder more and more customers understand.
Is this program right for my business?
The only reason a program like this is not successful is because the customer’s object. This program can be implemented successfully. Always give your customers a 30 days’ notice before implementing the program. Put up signage that explains when the program will go in place and what the fee is. This gives customers the ability to decide if they want to pay the fee or bring cash next time they shop. From a financial standpoint saving 95% or more in processing fees can be a big deal to a business. Many businesses are turning these saved fees into profit by increasing inventory and staff. It proves to be a win win financially for most businesses.
What to look for in a Cash Discount Program
- First find a reputable company. Check them out of BBB. If they pass the service rating test evaluate the program parameters.
- Determine what they will be charging your customers? This should not exceed 4% as the card brands have a limit set.
- Technology- What type of technology are they offering? Be sure they have the type of technology you need to accept payments. Their product offering should include mobile app for use with android and ios, Point of Sale System and stand-alone terminals. Many processors will place equipment at no cost or include it in their monthly fee.
- Zero Processing Fees– The only fee you should pay in this type program is a monthly fee, pci compliance fee and equipment fees. This fee should be less than 5% of what you were paying in the traditional program. This program was designed to bring savings. Do the math and be sure the program you’re signing up with does just that.
What are the nuts and bolts of the program?
A cash discount program is where a business essentially prices all their goods and services as cash. This is the lowest price that the business is willing to sell a product or service for. The business imposes a service fee for all credit card transactions. This fee should be visible on the receipt and there should be notices at the front of entrance and with in the establishment advising of this service fee. There are sophisticated POS systems that will list out the cash price and credit card price for all products if your business has a need for a POS system. This program is meant to reduce the businesses cost by at least 95%. Be sure to do the math and verify the fees your responsible for. This program is increasingly gaining momentum and one that will be around for some time. At some point you may find that you want to try this in your business. We encourage you to find a trusted provider and to be sure to notify your customers before pass the fees along.