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Zero Cost Credit Card Processing: Everything You Need to Know

Accepting credit card payments is vital for any business in today's digital marketplace. Payment processing can be a significant expense for small and high-risk businesses, with processing fees adding up quickly and putting a strain on growth.

While accepting credit cards is essential, did you know that there's a way to do so without paying processing fees? It's true! And it's a method known as zero cost credit card processing!

In this blog from ModPay Solutions, we'll discuss everything you need to know about zero cost credit card processing. We'll also take a look at what this payment processing method can offer your business!

Zero Cost Credit Card Processing: Everything You Need to Know

Table of Contents:

  1. What is Zero Cost Credit Card Processing?

  2. How Does Free Credit Card Processing Work?

  3. Free Credit Card Processing: What to Look Out For

  4. Credit Card Processing Pricing and Fees

  5. Who is Zero Cost Credit Card Processing For?

  6. No Fee Credit Card Processing: Benefits For Your Business

  7. Conclusion

People Also Ask:

What is zero cost credit card processing?

"Zero cost" or "zero fee" refers to a card processing method where businesses can accept credit card payments without paying processing fees. Instead of your company paying the fees to process credit cards, the customer takes on the costs.

Is there a way to avoid credit card processing fees?

The best way to avoid card processing fees is to pay your balance on time and in full each month. Credit card companies must give you a certain amount of time between the billing cycle and when your payment is due. This time is called a grace period.

What is Zero Cost Credit Card Processing?

Zero cost credit card processing, or free credit card processing, is a payment system that allows businesses to accept credit cards without incurring fees. Instead of paying per transaction and monthly account fees, companies can keep 100% of their profits from each sale.

There are several types of zero cost processing solutions available, such as:

Zero cost processing is popular for businesses of all sizes and high-risk businesses that need more financial resources to pay for traditional payment solutions.

How Does Free Credit Card Processing Work?

Zero cost processing works by using an interchange plus pricing model instead of a flat rate fee structure. This pricing model charges a fixed markup fee on top of each customer's transaction's interchange fee (the fee charged by credit card companies).

With the interchange plus pricing model, there is a percentage limit to how much is added. This charge or percentage is known as a surcharge.

Most states have a surcharge limit of 4%, with states like Colorado charging 2% or passing the total processing costs to the customer.

This pricing model allows merchants (businesses) to pay for what they use rather than pay one flat rate regardless of how much they process. It also eliminates additional fees such as monthly minimums and statement fees that can add up quickly for businesses with large amounts of transactions.

Free Credit Card Processing: What to Look Out For

Accepting credit cards without standard fees offers advantages for businesses that need the cash flow or sales numbers to cover the processing rates. And, while traditional payment processors are cautious about zero fee card processing, it's an option worth considering.

If you're a business owner interested in zero percent processing, here's what to look out for when searching to find the best solution:

Credit Card Processing Pricing and Fees

No card processing solution is entirely free. While you can pass the processing fees onto your customers with a no cost processing method, you'll still need to cover some expenses.

When looking to partner with a 0% processing provider, make sure to reads the fine print when it comes to:

It's important to remember that some fees are inevitable, such as debit card processing fees. Our team at ModPay Solutions suggests doing your due diligence and comparing unavoidable fees with other payment processors to get the best deal possible! Be sure to calculate those extra fees, as they can add up quickly.

Who is Zero Cost Credit Card Processing For?

Zero fee processing is available to many businesses but may be very beneficial for high-risk businesses with limited access to financing or investment capital.

These no cost solutions may be more accessible than other forms of payment due to their low setup costs and minimal maintenance requirements. They provide a way for small businesses and startups on tight budgets to accept payments without expensive transaction fees or other costly overhead expenses.

No Fee Credit Card Processing: Benefits For Your Business

Zero cost credit card processing can provide many benefits for your business. First, this payment processing model can help you avoid hefty monthly fees when using merchant account services.

If you’re an entrepreneur or small business owner tight on cash, zero percent card processing allows you to invest more profit into your venture. Plus, you’ll have the freedom to modify the pricing of your services or products to match your needs.

Many zero cost methods offer more security by ensuring all sensitive data remains with your merchant provider rather than being stored at other locations. Many business owners use no cost payment processing to prevent fraud and ensure their company won’t be responsible for illegitimate charges.


Zero cost credit card processing can be an ideal solution for many businesses looking for an affordable and efficient way to accept customer payments. By eliminating costly merchant account fees and providing more flexibility, this payment solution has plenty of benefits for businesses seeking alternative options.

If you're interested in learning more about how zero cost credit card processing could help your business grow, contact ModPay Solutions today!

Our team is happy to answer any questions and help you find the right solution for your unique business needs!

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