Zero Cost Credit Card Processing

Some call it "free credit card processing", others call it a "zero fee merchant account"… our customers just call it "awesome" – you will too!

What is Zero Cost Credit Card Processing?

“Zero-fee” refers to a processing method where businesses can process credit card payments without paying the processing fees. Instead of your business paying the credit card processing fee, the customer pays the processing fee. The charges vary by processor but it can’t be more than 4%. After the customer swipes their card, the terminal will notify them of the fee and give them a chance to accept or use a different payment form. When the customer covers the fee, you get 100% of the sale—it’s that easy.

As a retailer, “zero-fee” processing generates significant cost reductions associated with processing credit cards. It’s known as surcharging credit cards if you pass your processing fees to consumers, and it’s already an option that you can select regardless of your credit card processor. In all but 9 states in the United States, surcharging is allowed as long as certain criteria are met.

From gas stations and cell phone carriers to healthcare and nonprofits, many industries have found success with zero-fee processing and continue to give their customers the option to decide which card payment is most convenient.

Benefits of Zero Cost Credit Card Processing

There are numerous benefits of zero-cost credit card processing for your business. For one thing, it can help you avoid hefty monthly fees for using your merchant account services. In addition, if you’re strapped for cash, zero credit card processing fees allows you to invest more of your profits back into your business. Plus, you have the freedom to adjust the pricing of your product or service to fit your needs.

Additionally, it may provide more security than other options by ensuring that all sensitive information remains with the provider rather than being stored at another location such as in-house servers or mobile devices. Many business owners use zero-cost credit card processing to prevent fraud and ensure their company won’t be responsible for invalid charges.

Many companies also don’t lock you in a long-term contract, equipment fees, or have any upfront costs, so it’s easy to get started. 

Considerations before you Deploy Zero Cost Credit Card Processing

Surcharging programs can shift the cost of processing transactions onto your customers, but you’ll still be paying fees, including a host of recurring and incidental merchant account fees. In addition, you might also be charged an additional monthly fee for adding surcharges on to your card.

Evaluate carefully to ensure that this doesn’t cost more than it would have without a surcharge program. For example, implementing a zero-cost credit card processing program works best for businesses with a high credit card monthly volume. On the other hand, charging may not make sense if your business rarely takes credit cards.

To surcharge credit card users, you must provide adequate notice that they’ll be charged extra. The biggest downside is that this’ll lead to lost website or store sales once your customers realize their purchase will incur additional fees. Ensure that your business has a plan on how to attract and keep customers when they’ll be expected to pay 3-4% more at your business. 

Examine what your competitors are doing before surcharging. If they aren’t, you’ll put yourself at a competitive disadvantage, which ultimately results in less profit than if you opted to shoulder the processing fees yourself. The Internet has made it easier than ever for customers to obtain goods and services, so factor this in your decision to implement a zero-cost credit card processing program.

It’s important to note that surcharges can only be applied to credit card transactions, making customers consider using their debit card or paying with cash instead, which might result in overall lower processing costs. Still, you won’t eliminate fees because many consumers take advantage of credit card reward programs while others never carry any form of currency. For these types of consumers, these surcharges will likely discourage them from shopping at your store altogether. 

Before choosing a no-fee processing program, consider the advantages and disadvantages. Of course, you’ll want to weigh savings in credit card expenses against lost sales or incensed clients, but ultimately, the only way to know is to give it a shot.

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"We partnered with Zenti in 2017 and they've been there for us every time. Everything is super fast and I love how well they communicate with our staff. They really know their stuff, and we work in a very complex industry! My account executive knows our business inside and out."

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Ideal Industries for Zero-Cost Credit Card Processing:

Wholesale Distribution
Retail
Property Management
Outdoor Services
Nonprofit Organizations
Marinas
Logistics
Law Offices

Insurers
Eye Clinics
Equipment Sales & Rentals
Cosmetic Services
Contractors
Auto Repair
Auto Dealerships

Zero-Cost Credit Card Processing Frequently Asked Questions

In general, no, because they list the cash price and add a fee at the point of sale.

A cash discount works by applying a small customer service fee to all transactions. This fee is removed if the customer pays with cash or an in-store gift card.

There are clear regulations for zero fee processing that must be followed. Cash discount programs come with a lot of confusion for both consumers and employees. The truth is, not all cash discount programs are built the same, and most don’t adhere to federal compliance laws because they list the cash price on the shelf and then mark up the fees at the point of sale.

You cannot pass on the cost of card acceptance with a convenience fee for several reasons.

  1. A convenience fee must be a flat-dollar amount, regardless of the value of the payment due. In other words, the convenience fee mustn’t be a percentage and mustn’t increase in any way as the transaction size increases.
  2. A convenience fee may only be applied in a card-absent channel of acceptance (such as online or by phone). Additionally, the merchant must also accept credit cards in person and apply no fee to card-present payments; therefore, a merchant that accepts only card-absent payments may never use a convenience fee.
  3. Finally, the merchant’s convenience fee may only be applied. (A convenience fee applied by any third party is non-compliant.)

No, you can’t.

Regardless of how the customer’s debit card is processed at the point of sale, you mustn’t apply a fee to debit cards. Our services automatically detect when a debit card is entered and apply no fee to keep you compliant with existing rules and regulations.

Yes, they are eligible for the “service fee” program.

Government and education institutions are eligible for the “service fee” program, which permits the fee to be applied to both credit and debit cards. In addition, this program requires that the fee be processed as a second, separate transaction.

merchants

Integrations

Zenti Connect plays nice with others

Zenti Connect integrates seamlessly with ISV software to simplify payment processing for merchants: any payment type, on any device, anywhere.

Zenti integrates with over 99% of the tools you are already using, including popular accounting software and e-commerce apps, regardless of your industry. Our payment services were designed to be adaptable to provide seamless integrations for our customers.

Frequently asked questions

BigCommerce
Formsite
Infusionsoft
Keap
Magento
Microsoft
Dynamics
Network Solutions
SalesForce
Shopify
Volusion
Web.com
Weebly
WIX
WooCommerce
WordPress
Yola

Cart66
Checkfront
EASYCART
eShop
Event Espresso
events manager
GetShopped.org
GRAVITY
Jigoshop
Paid Memberships Pro
Shopp
SHOPPERPRESS
templatic
TheCartPress
WishList MEMBER
WooCommerce
WORDPRESS eSTORE
WP GATEWAYS
WpInvoice
wpmudev

Drupal Commerce
Ubercart

HikaShop
Miwisoft
VirtueMart

911 Software, Inc.
ACR Systems
Activant
Aldelo Systems, Inc.
Applied Micro Technology
Advanced Retail Management Solutions (ARMs)
Auto star
Cantaloupe Systems
Data Business Systems
Datacap Systems, Inc.
DataTech Corp
DataVantage
Edgil Associates
Elavon*
Epicor (CRS, NSB)
Freedom Pay
Gateway Ticketing Systems
Idalica Corp
IJN Systems
IT Retail
KWI
Main Street Softworks
MBS Textbook Exchange
Medasyst, Inc.
Microsoft
Software, Inc.
PC America
POSiFlex
RATEX Business Solutions
Retail Data Systems
RTL Payment Systems
ScanSource, Inc.
Sicom Systems, Inc.
Slim CD
Tempus Technologies
Tender Retail Systems
The Software Mills
Tomax Corporation
Total Computing Solutions
TouchNet Information Systems
XProtean, Inc. (C-Payment Software)
XPient Solutions
Vista Entertainment Systems

911 Software, Inc.
Data Business Systems
Dinerware
Datacap Systems, Inc.
Main Street Softworks
Menusoft Systems Corp.
Micros Systems
Midnite Express, Inc.
Software Inc.
NCR
onePOS.com
Ordyx
Radiant Systems
Revel Systems
Sicom Systems, Inc.
Squirrel Systems
Tempus Technologies
XPient Solutions
XProtean, Inc. (C-Payment Software)
Elavon (previously Southern DataComm and Global Card Services)

Dresser Wayne
Excentus
Fuel Links
Fiscal Systems, Inc.
Gilbarco
LOC Software
Main Street Softworks
Petro RX
PetroVend
Radiant Systems
Retalix
VeriFone Ruby System

Datacap Systems
JPMA
LOC Software
Logivision
MTX/EPS
RORC
StoreNext
Torex

911 Software, Inc.
Hotel Software Systems
Slim CD
Elavon
Tempus Technologies

Government organizations face a growing need for secure payment processing services while managing highly specific needs for content management and security. 

We can work with popular technology products government agencies prefer, like Ciber and Cubic, to create an integrated solution that meets all your needs for processing payments, managing information, and more.

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Integrate with everything. Scale with confidence.

Ecommerce
Cryptocurrency Payments
Virtual Terminals
Payment Gateways
Wire Transfers
Zero Cost Processing
Accept Checks Online
Retail POS
Online ACH Payments
Telephone Orders
Text Message Payments
EBT & SNAP Payments
Digital Wallets
Send Invoices
Recurring Payments
ATM Machines
Self Service Payments
Accept Mobile Payments