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What is a Zero-Fee Credit Card Program?

What is a zero-fee credit card program, and why is it good for both businesses and customers? This short article will go into how this program may be a good option for you to keep costs low, attract more business, and increase profit. 

How a Zero-Fee Credit Card Program Works

With most payment processing programs, you need to pay a processing fee each time a credit card gets swiped. The fee changes based on your processor and the type of credit card. For example, the reason a lot of companies don’t accept American Express is they tend to have higher fees than other carriers, such as Visa. 

Who pays the processing fee? The company selling the product or service. And while the fee is usually fairly small – a few percentage points – those numbers add up fast. For example, if you pay $0.50 per customer and average 100 customers a day, that’s $1,500 going out of your pocket each and every month. 

Not only that, but your business also ends up paying other fees like statement fees, authorization fees, and monthly fees. 

A zero-fee credit card program flips this on its head. Instead of your business paying the processing fee, it’s passed onto your customer. The good news is most customers don’t mind paying an extra 4% fee. After all, on a $3 coffee that only comes out to 12 cents!

How a Zero-Fee Credit Card Program Lowers Costs

Assuming most customers pay with a credit card, you essentially just lowered your costs by 4%. Again that doesn’t seem like much if you look at just one transaction. But multiply these savings by hundreds or thousands of transactions and you start seeing a major difference. 

These savings make it easier for you to keep prices low and competitive. They also open the opportunity for you to offer discounts to customers willing to pay cash. This essentially gives them a double discount:

  • They save by not having to pay the 4% fee
  • They save extra – say another 2% – by paying cash

Everyone loves a good sale, and you’re now able to put your products and services on sale all the time!

How the Zero-Fee Card Processing Program Increases Profits

As you know, the most powerful type of marketing is word of mouth. Since you’re already offering a great product or service and combining it with great pricing, word will spread. Your customers will tell of the great experience they had and refer your business to their friends or family.

Combine this with the money you’re saving, and it’s a no brainer. There’s a reason why this type of program is spreading like crazy! Businesses love it because they save millions of dollars every year. Customers don’t mind it, and some even like it since they get lower costs if they pay with cash. 

Yes, it does mean the payment processor is sometimes making less money than if we were charging a higher rate, say 6%, to you. But our business is to help our clients’ businesses, and giving them the opportunity to save money and increase their profits is what we’re all about. 


Is a zero-fee credit card program for you? If your company processes a lot of credit cards, it’s definitely worth considering. Send us an email at info@paykoncept.com and let us know how we can help. 

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