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Pay 0% Per Transaction: What it Could Mean for Your Business

With over 60% of Americans preferring to pay with a card, it’s no secret how vital accepting card payments is for businesses. However, if your business accepts credit card transactions, you’re likely to pay processing fees.

Processing fees can significantly impact your bottom line, and that’s why it pays in more ways than one to reduce transaction costs. One way to do this is through the pay 0% per transaction merchant services option, but what does that mean?

In this blog post from ModPay Solutions, we’ll look at the impacts of processing fees. We’ll also explain a pay 0% per transaction solution and the benefits it can have for your business.

Pay 0% Per Transaction: What it Could Mean for Your Business

Table of Contents:

  1. Do You Know How Much Your Business is Paying in Processing Fees?

  2. Why You Should be Concerned About Processing Fees

  3. Pay 0% Per Transaction: What Does It Actually Mean?

  4. How Does It Work?

  5. The Benefits of Paying 0% Per Transaction

  6. Increased Profits

  7. More Control Over Finances

  8. No Hidden Fees

  9. Secure Transactions

  10. Easy Setup and Use

  11. How Can My Businesses Get Started?

  12. Conclusion

People Also Ask:

What is 0% processing fee?

0% processing or zero cost processing is a processing option where card processing fees are automatically passed to customers instead of the business.

Is there a way to avoid merchant fees?

Yes! You can apply a surcharge. Business owners can avoid paying processing fees by passing them to their customers during transactions. However, there are rules regarding this process that businesses must follow, and being PCI-compliant is key.

Do You Know How Much Your Business is Paying in Processing Fees?

If your business accepts any of the four major credit cards, such as Discover, Visa, American Express, or Mastercard, you're likely paying 1.5 to 2.9% in processing fees. And unless you've partnered with a viable merchant services provider like ModPay Solutions, you're paying closer to 3% per transaction.

Unfortunately, calculating what you're paying in processing fees is complex. Not only do major credit card networks charge transaction fees, but they also charge businesses scheduled fees with flat-rate pricing in monthly statements.

It's also common for your business to be charged incidental fees, which occur when there's a return or chargeback. To make things more confusing, multiple parties are involved in the single swipe of a card.

These include:

  • Credit card networks (Visa, Mastercard, Discover, and American Express)

  • Card issuing banks (Chase, Well Fargo, Capital One, Citi, and more)

  • Credit and debit card processors (also known as acquiring banks)

  • Merchant account providers (companies that manage your payment processing)

  • Payment gateways (PayPal, Square, Clover, etc.)

Why You Should be Concerned About Processing Fees

There is nothing small about starting a small business. Becoming an entrepreneur can mean starting a venture with razor-thin margins with little room for error.

According to the SBA (small business administration), up to 20% of small businesses don’t make it through their first year, with the numbers jumping to 30% the second year, 50% after years, and a staggering 70% after ten years. With percentages like that, it’s crucial to know where your business expenses are going and how to keep them as low as possible.

No matter what amount you’re paying in processing fees, the point is that there’s no recouping the losses. And instead of paying those fees charged by traditional processors, you could use the money saved to reinvest back into your business.

Pay 0% Per Transaction: What Does It Actually Mean?

“Pay 0% per transaction” means that when customers purchase with your company, you don’t have to pay any fees associated with the transaction. This happens when you partner with a payment processor that specializes in providing zero-fee transactions to businesses, including those at high-risk.

How Does It Work?

Paying 0% per transaction means that the merchant processor doesn’t charge your business the fees to cover each transaction. Instead, the processor collects their fees from the consumer making the purchase.

This transaction solution benefits businesses because it allows them to offer competitive pricing on goods and services, which can lead to increased customer loyalty. Additionally, paying zero per transaction means there are no fees associated with transactions.

This can be highly beneficial for businesses hoping to improve their bottom line, especially those who are already paying higher processing rates.

The Benefits of Paying 0% Per Transaction

Every business owner wants to maximize their profits, and one way is to take advantage of the benefits of a pay 0% per transaction solution. Let’s look at some benefits this type of payment processing offers.

Increased Profits

This benefit may seem like a no-brainer, but it bears repeating. One of the most significant advantages of a pay 0% per transaction solution is increasing profits without raising prices or cutting costs.

Rather than paying a percentage on every sale, you can keep it all and reinvest the funds into other aspects of your business. With no extra fees attached to sales, you can spend your money where it benefits your business the most.

More Control Over Finances

You also gain better control over your finances when you’re paying 0% on transactions. Many payment processing companies charge hidden fees and additional charges on top of their percentages.

When this isn’t an issue, you can ensure that no hidden costs are eating away at your bottom line. This gives you the ability to budget more strategically and accurately forecast how much revenue you can generate during any given period.

No Hidden Fees

Another significant benefit of 0% transaction rates is that there are no hidden fees or extra charges associated with it. Many traditional processors charge an additional fee for certain types of transactions.

However, zero percent transaction payment processing eliminates those fees altogether. Your businesses can save money on every transaction, helping you keep more money in your pocket.

Secure Transactions

In addition to being cost-effective, 0% transactions are also secure. All transactions are processed through secure networks and encrypted data, meaning your customer’s information is safe.

Furthermore, these transactions are also often backed by fraud protection programs that further guarantee customer data and funds security.

Easy Setup and Use

Paying 0% on transactions is also easy to set up and use. You can easily integrate a new or existing POS (point of sale) system into your website or app in just a few steps.

Additionally, this setup offers easy-to-understand analytic tools to better understand your customer’s needs and sales trends over time.

How Can My Businesses Get Started?

When looking for a zero-cost payment processor, always do your research first. The easiest way to get started with a 0% per transaction payment solution is to find a merchant provider that offers one!

Look for a processor that offers services and features that align with your needs. This could be anything from recurring billing and integrated invoicing to competitive rates and reliable customer service.

You should also consider security protocols and ease of use when choosing a payment processor. After all, if your customers don’t feel comfortable entering their credit card information, they’ll most likely not complete their purchase.


If you're looking for an affordable way to process customer payments, then paying 0% per credit card transaction is worth considering. By taking advantage of merchant providers offering these payment plans, your business can maximize its revenue potential and provide great value to your customers.

Paying 0% per transaction is an effective way for businesses, large and small, to get ahead in today's competitive landscape. Why not make the switch today?

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