As a business owner, the success of your business heavily relies on meeting goals, managing staff, and maintaining budgets. A key component to maintaining a successful budget is to keep outbound expenses to a minimum and only spend money on what is necessary in order for your business to run efficiently. A huge deterrent in saving money are fees: credit card processing fees (that are anything but zero dollars for most), rising rent or taxes if you pay a mortgage, rising health insurance costs and much more.

While zero fee processing is not the end all be all, it is the solution for businesses in need of cutting the expenses associated with accepting credit cards. Simply put: zero fee processing is a form of credit card processing that eliminates credit card processing fees for merchants. Read on to learn more about this form of credit card processing including how it works.

How does zero fee processing work?

With zero fee processing, credit and debit card processing fees are transferred to customers who don’t wish to pay for goods or services with cash. Look at it as: everything you sell is already discounted to the “full cash value.” If customers decide to pay with credit or debit, they pay the full retail value plus tax, the non-cash adjusted amount.

During a transaction, a non-cash adjustment appears as a prompt on the merchant’s terminal showing how much the fee is. When the merchant finalizes the sale, a receipt as shown below, will print out highlighting that fee. To ensure customers are aware of the adjustment, signage must be visible with the adjustment rate.

Zero Fee Processing Receipt Examples

The Pros and Cons of Zero Fee Processing   

The pros of zero fee processing include: eliminating your card processing fees, lowering out of pocket expenses, and writing off an extra percent on your taxes to only pay the true retail value of your products and services. Bottom line: zero fee processing saves merchants money.

Some merchants feel that a con is requiring customers to pay these fees. This is a program that has been around for decades and has proved to be successful and the truth is, most customers don’t mind, especially not on small ticket purchases.

For example: let’s say you own a popular coffee shop. You sell coffee for $4 a cup and are set up with a rate of 3.95% on your zero processing fees program. When your customers purchase that $4 cup of coffee at that rate, they only pay a $0.16 fee. Would you think twice about $0.16 fee if it came down to using cash or the convenience of your credit or debit card? Most people don’t and they don’t stop shopping at businesses because of it.

How do I get started with zero fee processing for my business?

Each zero processing fee program is unique and usually has a terminal fee associated to it that merchants are required to pay. The terminal fees are separate from standard card processing fees and are low with Net Zero Processing Fees™ powered by Priority Payments Local ($49 for up to two select terminals).

For more information on zero fee processing or Net Zero, contact us at, give us a call at 800-717-1250, or press play on the video below.

Leave a Reply

Your email address will not be published. Required fields are marked *