Does Zero Credit Card Processing Actually Cost Nothing?

Zero Credit Card Processing

Zero Credit Card Processing – Credit Card Processing fees are applied as a cost of managing the exchange of money from customers account to the merchant’s account in a secured manner.

However, many credit card processors offer “zero processing fees” as one of the services to attract merchants to use their services. The trust behind the Free Credit Card Processing is more than we know. And here in this article, we will discuss it in great details.

What is Free Credit Card Processing?

“Free Credit Card Processing” or “Zero-Processing Fees” or No Processing Fees” deals in the method where your customer will pay the fees instead of you as a Merchant for the services availed.

This service is called surcharging credit card where the merchant can pass the fees for processing the card to their customers. And, this plan is sold to merchants in the same of free or no-cost card processing.

So, the charges that seem like “free credit card processing” or “zero processing fees” are actually paid by the customers instead of merchants. In this article, we will discuss such arrangements that revolve around the credit card processing.

Does Zero Credit Card Processing Actually Cost Nothing?

As we have discussed, in the case of zero credit card processing the customer has to pay most of the charges.

However, it is not like the merchant is not paying anything entirely. Because there are still other charges to be paid by the merchant such as :

  • PCI Compliance
  • Monthly Fees
  • And many more.

Generally, these plans are designed in such a manner that the processing fees are reduced to “zero” or “no cost”. However, all the other charges are increased by a bit.

And when a customer is introduced to these prices, it seems like that the processing fees are reduced to zero.

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What Does It Cost To Your Customers?

The charges are generally set to 4% or less for the customer as the surcharge of no-cost credit card processing of merchant.

Also, customers are generally charged dynamically and the range is between 3.45% to 3.65%.

However, this is not any kind of hidden charge and your customer will see the surcharge in the receipt on their purchased goods and services. And in such situation, a customer can feel like being charged more than he/she should.

No customer wants to pay extra for any goods and services and if this is the case with you then you can lose customers.

What To Do Next?

As the merchant, the first thing you should do is check your competitors. If most of your competitors are using the surcharge method to get a minimized credit card processing, then you can also use this method for your business.

However, if your competitors are not into “no-cost credit card processing” then you should also reconsider your payment methods. Applying surcharges to your customer results in loss of customers.

In such a case, you can try other methods that can help with the reduction of credit card processing charges. Also, you can contact an expert to help you choose the ideal credit card processing method for your business.

We, at Merchant Stronghold, provide you with an expert who will customize the perfect deal for you depending on the industry your business is in. Contact us at the toll-free number +1 (727) 330 – 3944 and get the required services that you are looking for as a merchant. We also offer assistance regarding high-risk payment gateway and merchant account services.

Zero Credit Card Processing


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