Zero-Cost Credit Card Processing

Save thousands of dollars with our zero-cost program! Our no fee processing solution ensures our users retain more of their earnings - which means you can invest in the growth of your business. PaymentCloud offers:

  • Surcharge compliant card terminal
  • Lowest credit card processing fees
  • Minimal paperwork
  • Month to month terms
  • Quick approvals
  • Around the clock support
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As credit card processing continues to be the most popular form of payment for businesses throughout the United States, it's critical to find an affordable payment processing platform. While most payment service providers charge a range of processing fees, zero-cost credit card processing is an option for entrepreneurs who want to offset the cost of processing payments.

What Is Zero-Fee Credit Card Processing?

Zero-cost processing is a program that doesn't charge the business for all of the transactions that are accepted through the pos system. As credit card processing fees can eat into an enterprise's bottom line, many small businesses now choose to work with credit card processors that offer zero-fee options.

It would be inaccurate to deny the fact that there are costs associated with processing credit card transactions (interchange fees, monthly fees and chargeback fees to name a few), but with zero-fee programs these costs are absorbed by the cardholder through what’s known as a surcharging. Customers will have a choice to pay with a credit card at a slightly higher price (known as a surcharge) or pay with cash at the original price.

Similarly, merchants can implement a cash discount program, where customers receive a discount on their purchases if they pay with cash, while paying the original price when using a card. While these two methods of zero-cost processing sound similar, there are some key differences worth noting.

Fees for debit card payments may be eliminated depending on if you’re using a surcharge or cash discount program. Cash discounts will eliminate processing fees for debit payments, but surcharges will not.

Zero-Cost Credit Card Processing

Benefits of No Fee Credit Card Processing

Reduce Exposure to Credit Card Payment Processing Fees

When you use zero-cost credit card processing, your customers pay your processing fees - this helps lower your costs.

Receive Original Prices for Products and Services

When your business pays for merchant account expenses, it leaves itself exposed to a mixed bag of fees and costs. This can make it difficult to price your products and services accurately. However, with this program, you will always know the exact price you're receiving for a specific good or service.

Encourage Cash Payments from Customers

If you want to reduce your exposure to credit card fees, charging a higher price for credit card transactions will make customers think twice about their payment method.

How to Offset Fees with Zero-Cost Processing

Zero-cost credit card processing automatically adds a surcharge to the transactions. Most states within the US have a 4% surcharge limit on each transaction. So for example, if a customer pays for a $10 drink the merchant would tack on an additional $0.40 so the total charge to the customer would be $10.40. If a customer pays with a credit card the terminal would automatically add this surcharge to the final amount. It is worth noting that debit card transactions cannot be surcharged (the plus side, debit card transactions carry the lowest interchange fees of all card types).

While there are other types of surcharging, they're often manual, which can cause operational issues for your staff members and slow down payments.

What to Consider Before Passing on Credit Card Fees to Customers

If you're considering a zero-cost program, it's essential to remember a few downsides.

Firstly, customers may not be happy about paying a premium to use their credit cards. As most businesses in the United States now allow credit card payments, passing on card fees to customers can be seen as a competitive disadvantage. If you're in a competitive niche, passing on fees may cause customers to look elsewhere. People have grown to rely on credit card rewards.

Secondly, each state has rules about zero-fee credit card transactions, surcharging, and other similar fees. So it's critical to understand your state's laws before proceeding.

Zero-Cost Credit Card Processing

The following states and territories have limitations for passing credit card transaction fees to their consumers:

  • California
  • Colorado
  • Connecticut
  • Florida
  • Maine
  • Massachusetts
  • New York
  • Texas

Zero-Cost Credit Card Processing Laws

One of the most challenging elements involved in zero-cost processing is complying with the laws that surround this payment practice. Some states - such as Texas - have rules that disallow this type of program. However, most states in the country do allow various forms of surcharging, provided that regulations are followed correctly.

If surcharging is banned in your state, you can still enjoy the benefits of zero-cost credit card processing by offering a cash discount program instead. Search online to understand your state's processing laws - and keep up to date with what is permitted. Your merchant account provider can help you stay compliant with local regulations.

Business Types We Support for Free Credit Card Processing

At PaymentCloud, we're an advocate for all types of businesses. We work with a wide range of industries to supply free credit card processing, as well as other types of payment acceptance services.

Unlike many other free credit card processors, we also work with high-risk merchants. This makes us an excellent choice if your enterprise's industry rules you out of working with other merchant account providers. We partner with many high-risk industries for free credit card processing services.

No Fee Credit Card Processing FAQs

We receive a lot of questions about no-fee credit card processing. Let's take a closer look at some standard questions and their answers:

  • Does my business qualify for zero-cost processing?

    Most businesses that want to accept credit cards can qualify for zero-cost processing. At PaymentCloud, we're happy to work with any type of business, regardless of size, risk level, or processing history.

  • What is the difference between a cash discount program and surcharging?

    Cash discounting provides customers with a discount for paying with cash. This means that the original price is reduced if you use cash. However, with surcharging, the original price increases if you use a credit card. There are strict rules in various states regarding cash discounts, so make sure to explore this.

  • Is it okay to pass on processing fees to my customers?

    Yes, but it's critical to remember this might cause animosity from customers. If other businesses in your industry don't pass on credit card fees, they may choose your competitors for their next purchase.

  • How do I stay compliant with surcharging laws?

    Surcharging laws vary from state to state - some states ban it altogether. Start by researching your state and its laws regarding surcharging. By following your local regulations, you can stay within the legal bounds of surcharging and avoid problems in the future.

Free Credit Card Processing for Small Business

We offer a host of custom payment solutions to our clients - and we have payment expertise across a broad range of industries. Together we can bring your enterprise's payment solutions to the next level!

Get Started With Us Today

If your business is ready to take advantage of free credit card processing, there's never been a better time to get in touch with our team. Call now to find out more.

Why Merchants Choose PaymentCloud for Zero-Fee Processing

At PaymentCloud, we're committed to keeping credit card processing affordable for our clients. As a merchant services provider that supports almost every business type, we understand some industries incur large processing fees and we provide economical prices to all our clients. With a proud average of 4.8 stars across all review sites, PaymentCloud is excelling in solutions and support. But don’t take our word for it! Here’s what our merchants have to say: