Zero Cost Credit Card Processing Savings

As the example below shows, zero cost credit card processing savings can amount to thousands of dollars in savings each year for even small businesses. The merchant processing costs that would otherwise be paid by the merchant are passed on to the customer. Also known as "surcharging", over 40 states, including New Jersey, California, Florida, Rhode Island and Pennsylvania currently allow the business to pass credit card processing costs on to customers. We are one of the few companies that can assist businesses to properly comply with state law and the credit card association guidelines so all legal requirements are met. We can even provide the only approved terminal that meets all the certifications to make sure a business meets all the necessary requirements. 

Zero Cost Credit Card Processing Savings Example

EXAMPLE: Based on a $100 sale.     

CUSTOMER pays $103.50 for their purchase.                                  

The Customer pays $100, plus the 3.5% credit card processing surcharge fee, for a total of $103.50 for their purchase. We give the store the required signage so that customers understand they are paying a surcharge, and can can choose to pay by cash or debit card if they prefer. Also, the credit card receipt will clearly itemize the amount the customer is paying for their portion of the credit card processing fee, all as required by law and the major credit card brands. The approved software and terminal we provide do not charge customers if they use a debit card, which our terminal and software are able to identify. 

MERCHANT receives a full $100.00

The Merchant is receiving a full $100.00, which is the net amount of the purchase, meaning the Merchant is not paying for the processing fees. 

PROCESSOR receives the $3.50 surcharge to cover processing costs.

The credit card processor receives the $3.50 surcharge fee to cover processing, which is then apportioned between the bank, card brand an processor. Approved processing software handles the calculations and payment; the Customer pays the $3.50 processing fee, not the Merchant.                                                   

The Business Nets $100 on a $100 Sale.

Business Saves Thousands of Dollars Each Year!

There are monthly costs associated with maintaining the account plus the business would have to pay for debit card transactions, since merchants are not permitted to surcharge customers that use debit cards.

      Standard Monthly Fees:

  • Monthly Statement Fee         $10.00
  • PCI Compliance Fee                15.00                          
  • Credit Card Terminal              35.00
  • Total                                    $60.00

So if a business was paying $500.00 per month in credit cad processing fees, that amount would be reduced down to $60.00 plus the cost of processing any debit cards, if the business accepted debit cards. Estimated savings for the business in this scenario would be over $5,000 per year.

Which Businesses are Best Suited to Use a
Zero Cost Credit Card Processing Program?

It really depends on the individual business owner or company to make that decision for themselves, but feedback from the automotive servicing industry in California has been positive. Those business categories include:

  • service stations;
  • automobile sales;
  • auto repair shops;
  • auto body shops;
  • auto painting; and 
  • tow truck operators.

While all business sectors would benefit from zero cost credit card processing savings, it seems businesses with big ticket items, meaning providing goods or services with a typical sale over $100, would do extremely well because they are paying significant amounts each month in merchant processing fees. We have even heard from small ticket business owners like sandwich shops that are tired of paying processing fees when customers use their credit card to charge $5.00 or $10.00 for a purchase.

Based on our experience so far, other businesses that would benefit and improve their bottom line include:

  • veterinarian practices;
  • pet care businesses;
  • retail shops;
  • restaurants and cafes;
  • business-to-business sales;
  • law offices;
  • dental practices;
  • online businesses;
  • dry cleaners; and
  • liquor stores. 

Joseph LaRocco has been helping small and large businesses save thousands in credit card processing fees each year even when surcharging is not allowed in their particular state. Zero cost credit card processing savings are just another option that Joseph LaRocco advises business on so they can cut costs and increase their net profits. While surcharging is allowed in many states like New Jersey, California, Florida, Rhode Island and Pennsylvania it may not be suitable for all businesses and it depends on a number of factors. Joseph LaRocco acts as a trusted business adviser to help business owners understand all the factors they should consider before making a decision to take advantage of implementing a zero cost credit card processing savings program into their business.

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