If you are a beginner in business, free credit card processing services will be the ideal choice for you. Unlike regular credit card processing, you do not have to pay for expensive credit card processing software, customer service fees, secure servers, minimal transaction fees, and monthly gateway fees when using free credit card processing.
Most free credit card processing companies only charge a nominal fee per transaction or monthly percentage fee. Therefore, free processing helps you save some money every month. However, this does not work properly when a merchant account is involved. Regular credit card processing involves payment of state fees, minimum fees, discounted fees, and license fees, in addition to the initial fee.
Many free credit card processing companies do not require setting up your own merchant account. Today, many online businesses take advantage of free credit card processing. They include CCBill, iBill, V-Share, and ShareIt.
If you choose to use free credit card processing, we encourage you to visit a credit processing company to find out what types of transactions are typically done in credit card processing. Third-party credit card processing companies can be a great source for those looking for a cheaper way to accept credit cards online. They usually offer free credit card processing services. Their merchant account does not charge anything for many transactions, including phone, fax, retail, email, internet or wireless business.
A no-cost or "no-cost" process is a processing solution where credit card processing fees are automatically delivered to your customers. Instead of your business paying the processing fee, your customers will pay the fee.
Passing your processing fee to a customer is known as an additional credit card, and it's an option you can choose regardless of your credit card processor. In the United States, surcharges are allowed in all countries except 9 countries as long as certain conditions are met.
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Is there really no cost to me?
Not exactly
With zero processing fees, most of the costs will be covered by your customers, but there may still be fees for you, including monthly fees, PCI compliance fees and more. With multiple processors, you can choose to combine them with additional customer costs.
In addition, additional fees can only be applied to a credit card. If your customer chooses to pay by debit card, he will proceed with transaction processing fees, even if the card is "run as credit". A debit card is always considered a debit card for processing purposes, so debit cards will be charged a debit card fee. (Contrary to popular belief, processing a debit card is not free).
Lastly, you may have equipment costs. Some of the zero cost processors offer the option of hiring a credit card machine, which I do not think you do. Rent will add monthly fees that far exceed the cost of purchasing the terminal directly.
How much does the processing cost cost?
Fees will vary by processor, but may not exceed 4%.
I reached out to the Dynamic Payments System, one of the free credit card processing installers. In fact, the company charges a flat fee of 3.45% for each credit card transaction. You are welcome to charge an additional fee of 3.45% for subscribers or an additional charge of 3.65% for additional monthly fees. (This monthly fee includes a $ 5.00 administrative fee, a $ 6.99 PCI fee and equipment rental fee).
3.45% is a pretty good margin for regular card transactions. Remember, your customers will see an invoice on your receipt, and they'll find out before making a purchase. 3.45% above their number could be a deterrent.
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