What is Zero-Cost Processing?
- A payment card surcharge, also known as a checkout fee, is an additional fee that a merchant adds to a consumer’s bill to offset merchant processing fees when a card is used for payment.
Zero-Cost Processing Compliance
(what others are not doing and need to be)
- The merchant must be registered with Visa and MasterCard
- The merchant must inform his or her customers of the surcharge with appropriate signage at the store entrance and at the point of sale
- The surcharge and the price of the product or service must be processed together as one transaction
- The receipt must show the amount of the surcharge as a separate line item
- Merchants must not surcharge debit cards
How the Merchant saves money
- Merchant currently does $200,000 per month in credit card transactions.
- Merchant currently pays approximately $5,000 per month in fees (2.5%)
- Through Zero-Cost Processing, all fees get passed on to the customer
Merchant saves $5,000 per month or $60,000 per year
- Merchant is now PCI and EMV compliant too (which he may have been paying fees for previously)