top of page
  • LinkedIn
  • Twitter
  • ModPay Solutions

Zero Processing Fees on Credit Card Transactions: How It's Possible

For business owners, processing fees on card transactions can be a major headache. These fees can add up fast, cutting into already thin profit margins. Fortunately, with ingenuity and some help from innovative payment processors, zero processing fees on credit card transactions are possible.


Sounds too good to be true, right? Well, it's not!


In this blog from ModPay Solutions, our 0% processing professionals will explain how this is possible.


Zero Processing Fees on Credit Card Transactions: How It's Possible

Table of Contents:

  1. What Do Zero Processing Fees Actually Mean?

  2. Why is It Important for Businesses?

  3. Zero Processing Fees: Who Can Benefit?

  4. 5 Ways Zero Processing Fees on Credit Card Transactions is Possible

  5. 1. Cash Discounting

  6. 2. Flat Monthly Fee

  7. 3. Surcharging

  8. 4. Negotiating with Your Processor

  9. 5. Partnering with ModPay Solutions

  10. Conclusion

What Do Zero Processing Fees Actually Mean?


Whether you own a mom-and-pop shop or a corporate empire, credit card payments are an instrumental part of your business operations. However, with card transactions comes something that most entrepreneurs don't like – processing fees. Fortunately, some processing providers offer zero processing fees on card transactions.


But what exactly do zero processing fees mean? It means businesses do not pay the costly processing fees typically associated with processing credit card payments, making saving more of your hard-earned bottom line possible.


This merchant processing solution can translate into significant savings for businesses, particularly those that rely heavily on card transactions. So whether you're a small business or a large corporation, partnering with a provider that offers zero processing can result in significant savings at the end of the fiscal year.


Why is It Important for Businesses?


No cost card processing means there's an opportunity to increase profit margins for businesses with zero or no fees. Paying zero on processing fees results in extra revenue, which can be invested back into your business.


This revenue can mean hiring new employees, increasing inventory, upgrading equipment, or introducing new products and services. Additionally, a zero fee processing model helps businesses remain competitive by enabling merchants to offer more comprehensive ways to pay for their customers in exchange for not having to pay the high cost of traditional credit card processing.


Zero Processing Fees: Who Can Benefit?


Any business in any industry can benefit from a no cost processing model. However, this solution is particularly beneficial for businesses that process large transactions or high-risk transactions.


Merchants considered to be 'high risk' often incur higher costs in processing fees due to the nature and industries of their business. Hefty fees mean significant impacts on bottom lines.

With zero processing fees, these businesses, and many others, can enjoy the total amount of transactions without steep deductions. This processing solution is also ideal for cost-sensitive businesses or for whom cost-cutting measures are essential in attaining profitability.


5 Ways Zero Processing Fees on Credit Card Transactions is Possible


Did you know you can enjoy zero processing fees on credit card transactions as a business owner? Yes, it's possible!


Continue reading to learn more.


1. Cash Discounting


Cash discounting is a legal and ethical way to eliminate credit card processing fees. It's a program that allows businesses to offer a discount to customers who pay with cash while adding a small service fee to those who pay with a credit card.


Here's how it works. Let's say you run a coffee shop and want to eliminate your credit card processing fees. You can offer a 4% discount to customers who pay with cash while adding a 4% service fee to credit card transactions.


This means that your customers who pay with credit cards will be paying for the cost of processing their payments.


2. Flat Monthly Fee


Another way to eliminate credit card processing fees is to opt for a flat monthly fee service. Many merchant processors offer this service. With this service, you pay a flat monthly fee instead of per-transaction fees.


This solution is ideal for businesses with high credit card transactions. The flat monthly fee is typically determined based on your average monthly transaction volume.


3. Surcharging


Surcharging allows businesses to add a small fee to credit card transactions so that the consumer pays for the cost of processing their payment. This fee can vary from transaction to transaction, but it usually falls between 1% and 4% of the total purchase amount.



4. Negotiating with Your Processor


Credit card processing fees can be negotiated with the payment processor. The terms and conditions of the agreement with your processor can be renegotiated after the contract has already been signed.


Although there are no guarantees, payment processors may agree to lower their fees to keep your business.


5. Partnering with ModPay Solutions


To eliminate processing fees altogether, you need to partner with the right merchant services provider. At ModPay Solutions, we have the experience, knowledge, and expertise to offer and implement innovative processing pricing models.


We also offer top-notch customer support, so you're never left in the lurch when you need help. Our zero processing professionals will provide you with options for customizing your payment processing solution, helping you significantly reduce costs and improve your bottom line.


Conclusion


Zero processing fees on credit card transactions are no longer a pipe dream for business owners. By partnering with a payment processor specializing in no cost processing, merchants can keep more of their hard-earned profits and avoid the headache of traditional processing fees.


10 views0 comments

Comments


bottom of page