No Fee Credit Card Processing: Is it Right for Your Business?

Is No Fee Credit Card Processing Right for your Business?

Is no fee credit card processing right for your business

Every year, thousands of types of businesses struggle to find ways to be able to add to their bottom line. 

With ever-rising costs, it’s a struggle to find a way to make enough to pay bills but also make a profit.

Bills like rent and inventory can fluctuate with negotiation, but others follow a never-ending upwards trend.

Costs like utilities, staff wages, and credit and debit card processing fees tend to be the costs that never go down.

Trying to find a credit card processing for small business can be difficult. Many processing companies have monthly minimums that they require their merchants to meet.

Choose a POS system that is able to handle all sorts of credit card payments, from basic card payment to online credit card payment.

The top picks in realtime payments systems should be able to accept payments from most major card brands and mobile payments like Apple Pay, as well as contactless and chip cards.

There’s Big Money in No Fee Credit Card Processing

Did you know that credit card processing costs are usually 4th or 5th highest expense for a business owner?

It’s no small sum of money that is taken out of the bottom line each month just to pay processing fees.

If you’re like most business owners, you shop around every now and then to see if you can save some money with new merchant account providers, but what if you could make that cost completely go away?

Many business owners like to turn to mobile credit card processing for their businesses.

Like having a square reader for Square for retail or Square for restaurants, there are many mobile processing payment solutions that can turn your personal devices, like IPads, into your very own mobile card payment processor.

But, there’s a new trend hitting the market that’s ending the traditional and online credit card processing numbers game. it’s called no fee credit card processing.  

What is No Fee Credit Card Processing?

It’s a very simple concept. With this new legal and compliant proprietary technology, the consumer pays a little bit extra for paying with a credit card. You reward your very best customers by giving them a discount for paying with cash.

Instead of raising prices, you’re letting your customers choose. If they want the miles on their credit card or the cashback, they pay a small interchange fee to use a credit card.

What makes no fee or surcharge credit card processing even better is that the system is completely automated right out of the box. The fee is added to the credit card receipt at the cash register checkout.

At the end of the day, the true cash discount fees are automatically taken out of the batch. Your credit card statement at the end of the month shows that your business owes zero dollars in merchant service fees. You’ve eliminated merchant fees for your business.

Let’s take a look at a couple real-world examples.

Example #1: Chain Stores

Consider a chain of convenience stores. This business runs over 10,000 transactions a month per location with an average ticket of about $6.00.

Even after switching between multiple companies to lower monthly fees, they still pay over $2,000 in merchant fees per location. With 11 locations they’re paying $22,000 a month in merchant fees, which adds up to more than $250,000 a year.

Many credit card processors try to lock you in for a multi-year commitment. At Shift, our clients have a monthly agreement with no termination fee for early cancellation. 

Cost saving measures have been put in place over the years to try and shave more off the processing cost of accepting credit cards.

They put up a sign at each location stating a $5.00 minimum purchase was required for all credit card transactions.

It had a minimal effect on the bottom line and probably drove away some easy small ticket sales.

They called every processor they could trying to find and get lower processing rates, but there wasn’t enough profit left in the account to make it worth a provider’s effort to switch them over anymore.

We were privileged to introduce them to our no fee credit card processing solution. The decision was made to try it at one of their locations first and see what the customers thought.

The feedback was great, and there was a common theme. Customers understood that the business was faced with a choice.

They could either raise their prices across the board to cover costs, or they could offer this cash discounting program, giving them the choice to pay less with cash. Customers would pay the posted prices for cash if using cash instead of a card.

Here’s what the owner said after 60 days. “After seeing two months of this system in action, I’m sold! I wish I would have switched all locations when I started. I’d have another $20,000 on my bottom line.”

He even said that with the savings for all the stores combined he will be able to open new locations.

Example #2: Local Business

Let’s take a look at a local dog grooming business. They process about $30,000 a month in credit cards, gift cards and debit cards and have an average ticket of $60.

After switching between multiple credit card processing companies over their last 15 years in business, they had their merchant fees drilled down to about $800 a month.

They were happy with the pricing but it still added up to almost $10,000 a year in additional fees.

Companies that offer their employees business credit cards may have higher credit card fees due to an increase of usage. 

In talking with this merchant, we learned that rent, staff wages, and credit card fees were their largest monthly expenditures. $800 a month was their 3rd highest business expense.

We challenged them to take the no fee credit card processing service test. With an average ticket of $60, the average customer paying with plastic would pay around $2.00 extra.

The result? Their customers were happy that instead of raising the regular price across the board, they had the choice to pay with cash, and thus pay the cash price, if they didn’t want to pay any extra fees, like PCI compliance fees.

Did all customers start paying with cash? No, the customers who pay with plastic before continued to pay with plastic and the cash and cash check buyers continued with cash payment.

Bottom line, the business owner was able to pocket $800 a month in credit card processing fees and continue building his business. A few months later  He even told us that he hired another staff member and took a much-needed vacation.

The Promise of No Fee Credit Card Processing

When any new product hits the market, it’s met with skepticism. Business owners want to know if this product can really do everything that it promises, and we challenge them to take the no fee test.

Many business owners that hear of zero fee processing are naturally skeptical. However, it is a realistic possibility for you through our POS software.

Better yet, we don’t try to hook you into some complicated, longterm contract. Instead, you agree to our service on a monthly basis.

Our merchants find that promises quickly become reality.

As a business owner, you can save hundreds and thousands of dollars a year in annual fees while keeping your most loyal customers happy.

Today’s the day you can stop paying credit card fees and use that lost income to grow your business by switching to no-fee credit card payment processing.

We also work well with high-risk merchant accounts because they know that we are willing to take on their accounts, while other processors might not be willing to take on that risk.

Download a Zero Fee Case Study!

Learn more about how ZeroFee Processing has actually put money back in the pockets of a real-life business owner.

Leave a Comment: