Credit card processing with no fees is a pricing approach in which the majority (or all) of the expense of credit card processing is passed on to your consumers, who pay the processing fees, not you. Zero-fee processing can be accomplished by surcharging credit card payments or by offering a discount to cash-paying clients.
Why Should You Consider Using A No-Fee Credit Card Processing Program?
Free credit card programs typically rely on software add-ons to enable your payment gateway, virtual terminal, countertop terminal, or point of sale (POS) system to automatically identify when a credit card is used and apply the necessary charge to the purchase price. If you have a cash discount program in place, the same software can be used to apply the discount to consumers who pay using alternative methods of payment.
Take note that these services typically pass on only the processing fees associated with credit card transactions. Typically, any additional fees related with merchant account maintenance, such as account fees, PCI compliance fees, credit card refund fees, and so on, are not included. Additionally, there is typically a flat monthly price associated with the program. As is the case with most industries, nothing in the credit card processing industry is actually free.
While the prospect of saving money on processing expenses is definitely alluring, there are numerous potential drawbacks to consider – drawbacks that processors attempting to offer you a “free” processing product will either minimize or completely overlook. Surcharging credit cards in particular is likely to reduce sales, since clients unwilling to pay the premium would move their business elsewhere.
The truth is that any credit card processor, including those that do not advertise it, can set you up with a surcharging program. Your best bet is to work with a respected, established provider (maybe one you already work with) that will install the program correctly and give additional benefits, such as superior customer service. Avoid the temptation to transfer to an unknown firm, and be extremely wary of offers to remove your credit card processing expenses. Contact us for more information now.
