What You Need to Know About Zero Cost Processing
Today, customers love to pay with credit cards. All those swipes can be costly for you, though. After all, credit card processing fees are about 3.5% per transaction. Fortunately, there’s a way to protect your profits: zero-cost credit card processing.
In this blog, we’ll consider the ins and outs of zero-cost processing, what you need to know about it, and how it can help you save money on payment processing fees.
Let’s dive in.
Credit Card Payments, by the Numbers
Before we talk about the perks of zero cost processing, let’s talk about credit card payments. Today, credit cards are the payment method of choice for 28% of all purchases.
In fact, credit cards are so popular that experts expect more than 1.25 billion cards will be in circulation by the end of 2023.
Credit cards remain a favored form of payment for consumers because they’re convenient and secure, and they provide an easy method for tracking spending.
For merchants, accepting credit card payments is essential to attracting and retaining customers. According to the 2021 State of Payments Report, 23% of consumers will abandon a transaction when their preferred payment method isn’t available.
What is Zero Cost Credit Card Processing?
Also known as zero-fee processing or cash discount credit card processing, zero-cost processing allows merchants to process credit card payments without getting stuck paying the processing fee.
Instead, zero-cost processing transfers the processing fee to the customer, who pays the fee in addition to their purchase cost.
Here’s an example:
Say a customer makes a $100 purchase and pays with a credit card. Let’s also say that your processing fees for credit card payments are 3.5%.
Without zero-cost processing, the customer pays $100 for the item, and the merchant pays $3.50 to cover the processing fee. With zero-cost processing, however, the customer pays $103.50, and the merchant pays nothing.
Put simply, zero-cost processing is an easy way to eliminate credit card fees and keep more of your profits in your pocket.
Which Industries Use Zero Cost Processing?
Any business that accepts credit card payments can use zero cost processing. That said, it’s especially popular for companies in industries like the following:
- Health services
- Brick-and-mortar retail
Zero cost processing can also be beneficial for high-risk merchants, as well. By eliminating fees and preserving as much cash as possible for your business, zero-cost processing allows you to reinvest your profits and scale your company.
Choosing a Zero Fee Payment Processing Provider
If you’re interested in protecting your bottom line with zero-cost processing, you need to find a payment solution that provides it. Here at SeamlessChex, we offer zero-cost processing as part of our merchant accounts.
Are you worried about clunky equipment or expensive rental fees? Don’t be. We provide a free, state-of-the-art, pre-programmed credit card machine - all you need to do is plug and play.
Ready to explore zero-fee processing and how it can help you increase profit margins? Sign up for your merchant account today.