As discussed in our breakdown of credit card processing fees, transactional fees are often the biggest cost or any merchant account - specifically the interchange reimbursement fees. These fees are often non-negotiable and are set by the credit card processor, credit card association, and card issuing bank. However, some banks are now offering a "zero fee" processing solution as a way to further lower the rates and fees associated with a high risk merchant account.
Zero-Fee credit card processing is a unique processing solution where the credit card fees are automatically passed to your customers. Instead of a company paying the service fee assessed for each transaction, your customers pay those fees.
Passing the processing cost onto the customer is a practice known as 'surcharging credit cards' and is not new by any means. Most credit card processors already have this option available though it often requires you to handle each part of the set up. However, with a zero-fee credit card processor like Zeno Payments, we'll handle all aspects of the set up for you, from notifying the credit card associations and banks to filling out the associated forms.
With zero-fee payment processing, most of the cost will be covered by your customers. However, there may still be some costs to you including flat fees (monthly fees, PCI compliance fees, payment gateway fees) and/or incidental fees (charge back fees or batch fees).
The charges that your customer receives will vary by your credit card processor but cannot be greater than 4% of the transaction.
If you'd like to find out how we can reduce your credit card processing fees with a zero-fee payment processing solution, get in touch with us!
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