Zero Processing Fees to
Accept Credit Cards

It may seem too good to be true! Accepting credit cards in your business is a true expense. With the increasing cost and changes to how much can be billed to accept a credit card it is becoming harder and harder to build the cost into products and services. Today as consumers we are accustomed to paying a fee to use those popular apps like Venmo, Cash App and PayPal. This type zero processing fee program transitions the cost of accepting credit cards onto the cardholder. These programs are not new. You may have noticed when you pay your cable bill or utility bill you are charged a convenience fee or a surcharge fee to use your card. This type of program is known as a surcharge program. Municipalities and utility companies have been doing this for years. The only problem with this program is that its not legal in all 50 states.

How can my business pass the processing fees to customers?

Today an old program that has been around for decades is coming back with popularity. You may have noticed that some gas stations list a cash price for gas and a credit card price. This is known as cash discounting. This same philosophy is being used by retailers, automobile service stations, fast food restaurants and service providers to pass along a fee to use a credit card. The business posts signage letting their customers know that all goods and services are prices at a discounted cash price. If the customer chooses to use a credit card a service fee is applied to the total. This fee is legible on the customer’s receipt.

Will my customers get mad if I pass the fees along?

We have found that if the business posts a notice 30 days prior to implementing a cash discount program this helps ease customers into the mindset that there is a fee to use their credit card. This also gives the customer the opportunity to bring cash next time they visit the business if they do not want to incur a fee. Most consumers are getting accustomed to paying a fee for convenience they do it today with apps like PayPal and Venmo. With the economic condition consumers are more willing to help small businesses stay in business. A program that reduces a businesses expenses and allows them to prosper or stay in business is being well received by consumers all over the country.

What type of fees should my business incur with zero processing fees?

All your credit card transactions will be covered by the cardholder’s fee. Most programs have a monthly fee to administer the program. This should not be excessive. Some providers may include technology or equipment in the monthly fee. This fee is for the use of the credit card terminal that you use to accept credit cards. This program works on all credit cards. If you have the need to accept pin-based debit cards there may be fees that apply to those type debit cards as its not compliant to bill a fee when someone is using their pin debit card.