Free Credit Card Processing? Is This Possible?


Many merchant service providers offer “zero-fee” credit card payment to attract customers. However, is it really free? The simple answer is no, it is taken under surcharges and your customers have to pay it for you. Therefore, if you are businessperson, then it is free for you.

Still, this is not free for you because you have to pay a monthly fee for this. This is a new dimension of the merchant service payment processing strategy.

Here in this article, we will provide you with in-depth analysis and more information about it.

Is This Possible?

No, this is not possible. There is nothing free in business. This is just the merchant service payment offer to attract customer. Moreover, your customers need to pay this for you. On the other hand, you have to pay other charges such as monthly fees, set up fees and many others. 

So, believe me, this is not free. You should read all the terms and conditions before signing any offer.

Credit Card Vs Debit Card

You have to know which modes give you a better return for your business.

You can offer cash discounts to attract your customers. However, at the time of payment, your customer needs to pay the surcharges, which is only applicable if your customer chooses credit card to pay your bill.

Nevertheless, why your customer will pay more on a credit card transaction? If he has the opportunity to use a debit card, then he will choose it and you, as a businessperson needs to pay transaction charges for his bill.

Set a Decent Convenience Fee for Your Business

The convenience fee is a fixed fee that you can set for your customer during checkout. It is applicable only on the credit card transaction. 

But the problem is, you need to set a decent amount, otherwise, your customer will be surprised. However, merchant service providers have their policies for this fee. You should contact them before setting a convenience fee for your customer.

  • Things to Remember
  1. You cannot apply surcharges without giving prior notice to your customer that they need to pay extra charges during checkout. No doubt, this will not be good for your conversion rate.
  2. The only option to allow free credit card processing is to add surcharges to your customer. But are your competitor using the same strategy? If not, then, how would you apply this? How can you attract your customer?
  3. There are plenty of other payment modes available for your customers such as wallet, net banking, debit card and cash. Many customers prefer traditional cash payment. They will choose their preferred modes of payment.
  4. You need to pay a monthly fee to your merchant service provider if you choose to add surcharges. In that case, credit card processing is not free for you.
  5. Many case studies have proved that almost 70% of customers do not like to pay surcharges. So, ask yourself, is it worthy for your business?


Yes, many merchant service payments company provide you with free credit card payment processing. Now you know the in-depth analysis from Utility Umbrella.

Calculate the overall cost that you need pay for a credit card transaction, if your business demands it, then choose your preferred merchant service payment processing for your business.

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