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0% Merchant Accounts and What They Could Mean for Your Business

As a modern business owner, you know that accepting payments is essential for the long-term growth of your venture. However, getting approved for a merchant account can be difficult, especially if you're a brand-new business or are in an industry considered "high risk."

Fortunately, there is an option that can help businesses in this situation—0% merchant accounts. A zero-fee merchant account allows companies to accept credit and debit card payments without paying traditionally high processing fees.

Often ideal for small to medium-sized businesses and high-risk businesses, 0 percent merchant accounts provide a more tailored and cost-effective solution to many businesses.

In this blog from our leading providers of 0% processing at ModPay Solutions, we'll take a closer look at what zero-fee merchant accounts offer and why they've become such an attractive option for many business owners.

0% Merchant Accounts and What They Could Mean for Your Business

Table of Contents:

  1. What is a 0% Merchant Account?

  2. How Does it Work?

  3. Who Are Zero Fee Merchant Accounts for?

  4. Zero Fee Merchant Account Considerations and Qualifications

  5. 0% Merchant Accounts: Understanding the Benefits

  6. Cost Savings

  7. Ease Of Use

  8. Flexibility

  9. Security And Fraud Protection

  10. Conclusion

People Also Ask:

What is the purpose of a merchant account?

To accept customer payments, a business needs a merchant account - a bank account for business use. With a merchant account, a company can receive funds through various methods, such as credit or debit cards and other electronic payment options.

What is a 0% processing fee?

"Zero-fee" is a process where businesses can process credit card payments without transaction fees. Instead of the business paying out those costly costs, customers take on that responsibility - which can be up to 4%, depending upon the processor.

What is a 0% Merchant Account?

A 0% merchant account is a payment processing account that does not charge business fees for transactions processed through the account. This differs from traditional merchant accounts, which charge the business based on the volume of transactions they process each month.

With a 0 percent merchant account, all transactions are processed at no cost to the business. This is because this type of account is an agreement between your company and your merchant services provider. The zero-fee merchant account agreement means that your business will not pay any transaction fees or other charges when processing electronic payments.

How Does it Work?

A 0% merchant account works like a traditional account with one key difference – you don't pay any transaction processing fees. Instead, the cost of the transaction is covered by the payment processor. This makes it much easier for businesses to accept credit card payments without worrying about high processing fees.

Who Are Zero Fee Merchant Accounts for?

0% merchant accounts are a great option for business owners looking to streamline their payment processing operations. Zero-fee business accounts are especially beneficial to business owners in high-risk industries.

Some examples of high-risk business industries include:

  • Online Gambling & Sports Betting

  • Cryptocurrency Exchanging

  • Adult Entertainment

  • Pawn Shops

  • Credit Monitoring

  • Magazine Sales & Subscriptions

  • Dating Websites

These industries often face difficulty securing traditional merchant account services. 0 percent merchant accounts provide business owners with a better way to accept electronic payments.

Zero Fee Merchant Account Considerations and Qualifications

When considering a 0% merchant account: If you are looking for reliable payment processing without paying transaction fees, then a merchant account with 0% payment processing may be best. It is beneficial if you are running a small business, startup company, or high-risk venture where budgeting costs is essential to stay afloat financially. This type of account could be beneficial if you need access to advanced features like reporting tools without investing in more expensive options.

When looking to qualify for a zero-fee merchant account: To qualify for a 0% merchant account, you must meet specific criteria set by the payment processor. Generally speaking, these criteria include good credit history and a solid track record of successful transactions with other payment processors. Depending on the provider, they may require that specific businesses to be registered with their service before they can open an account. Some providers may also require a minimum sales volume before considering opening an account with them.

0% Merchant Accounts: Understanding the Benefits

Zero-fee merchant accounts offer business owners the same functionality as traditional payment processing without added costs. Continue reading to discover some of the advantages of these types of accounts!

Cost Savings

One of the most apparent advantages of zero-fee merchant accounts is that they eliminate costly setup and maintenance fees. That means more money in your pocket that you can use to grow your business or invest in additional services such as marketing.

Additionally, zero-fee accounts have lower transaction costs than standard merchant accounts, making them a great option for startups or small businesses with tight budgets.

Ease Of Use

Zero-fee merchant solutions are typically relatively easy to set up and use, which is another significant advantage. Plus, many companies, Like ModPay Solutions, offer around-the-clock customer support should you ever need assistance with your account.


One significant advantage of a 0% merchant account is its flexibility. With certain types of merchant accounts, you may be limited in payment options.

But with a 0% merchant account, you can easily expand your options to include multiple payment methods such as credit and debit cards. This makes it easier for customers to pay and ensures you get all the potential sales due to a lack of payment options.

Security And Fraud Protection

Most 0% merchant accounts come with security features to protect you and your customers from potential fraud or identity theft issues. Your customer's sensitive data will remain secure, thanks to encryption technology and other security measures built into the platform.

Many zero-fee merchant solutions also offer chargeback protection services.


Merchant accounts with 0% processing fees can provide significant advantages to business owners who qualify. By eliminating transaction fees and offering customized solutions, business owners can increase profits while ensuring all payments are processed safely and securely.

Would you like to learn more about what 0% merchant accounts can do for your business?

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