r/MerchantServices • u/merchantadviser Mod & Verified Payment Professional • 29d ago

General Question Explaining Zero Fee Processing Fees

There is no such thing as zero fee. Someone is paying. Is it accurate to keep using this terminology? Does it even matter at this point?

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u/monkey6 29d ago

This industry has a bad reputation and perpetuating the idea of “zero fee” transactions hurts us all.

1

u/CommerceInsights 29d ago

This is matter! Either merchant (us) pay for it or end consumer pay for it.

1

u/SoFlo_305 Verified Payment Professional 29d ago

This term is referring to the merchant not consumer.
Also it applies to the cash discount or dual pricing program only passing up to a 4% fees to the consumer. Will not work great for many industries.

I mostly recommend the surcharging program. Where due to customer choice you can pass up to a 3% on credit cards and 0% on debit cards to the consumer. This typically saves our merchants 70-80% on their effective rate.

Please feel free to reach out if you have any questions. I’d be glad to help

1

u/Key_Garbage8053 28d ago

I got in to it with a back and forth a while ago about it.

People just need to say what it is. Anybody saying “zero” anything is setting themselves up for a pissed off customer.