How to Save Your Business Money From Expensive Processing Fees

If you run a small retail business, you know that there can be many small unexpected expenses that cut into your profits. Credit card processing fees are the price you pay for offering your customers the convenience of using their cards when they visit your store. Nowadays, you will not be able to stay in business if you do not take credit cards. You may have heard that there are some companies that offer zero fee processing and wondered if these companies were right for you.

It is helpful to know how processing fees work and the options for eliminating them.

What Credit Card Processing Companies Do

A few different entities make a credit card purchase possible. When a credit card is swiped through a machine provided by the credit card processor, a request is sent to the processing company. The credit card processor sends a request to the entity that issued the card.

Normally, a credit card processor makes its money by charging the merchant a fee for every transaction. The processor keeps the transaction safe and secure by providing crypto equipment and software. The credit card issuer and the credit card company itself will charge the credit card processor fees. Those costs are worked into what the merchant pays.

A small merchant may pay thousands of dollars in processing fees a year if they use a traditional processing company.

How You Can Take Advantage of Zero Processing Fees

Companies that offer zero processing fees charge the processing fee to the customer rather than the merchant. There are several different programs employed to eliminate processing fees for merchants.

Some merchants will offer a cash discount program to their customers. As you may have guessed, this means that customers will get a small discount when they pay in cash. The amount of the discount will be the same as the processing fee. People will feel they are getting a deal and come back to your store.

Merchants can also impose a surcharge for purchases made with a credit card. However, you are not allowed to do this with a debit card. If you are a small business, your customers will understand if you have to charge a small fee for offering credit card payments.

You can give the customers a dual pricing offer at the register. In this case, the customer will be offered two different prices for what they have purchased, one for payment with a card and the other for payment with cash.

You must always notify your customers if you are passing a credit card fee on to them. Different states have different laws, but you can post a notice on the credit card processing machine itself.

Zero processing fee programs save you money and put your customers in the driver’s seat. If you choose a reputable company and follow your state’s regulations, you will save a significant amount of money each year.

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Libby Austin

Libby Austin, the creative force behind, is a dynamic and versatile writer known for her engaging and informative articles across various genres. With a flair for captivating storytelling, Libby's work resonates with a diverse audience, blending expertise with a relatable voice.
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