You don’t want to waste money, right? Whether you run a liquor store, red light therapy clinic, or travel agency, you probably take steps to reduce expenses, such as cutting supply costs and optimizing business processes. After all, that’s how you boost margins and earn more profits. But chances are, you’ve overlooked one thing:Credit card processing fees.Before you say credit card transaction fees are just part of the game, hear us out. Because the truth is…You don’t have to pay these fees. You can get free credit card processing. And free card processing means taking home 100% of your revenue. It doesn’t take long to get started. All you need are the right tools and the right strategy. In this article, we’ll show you how you can get a zero cost credit card processing app and boost your profits by more than 10%. Yes, you read that right—more than 10%.
What is a zero fee credit card processing app?
Zero fee credit card processing apps can accept credit card payments without assessing fees. They’re easy to set up and can be installed on terminals, mobile devices, or online point-of-sale systems. Let’s say you’ve gotten started with a fee-free credit card processing app. In your next transaction, if a customer pays you $100, you’ll make $100. It’s that simple. Not having to pay fees means taking home every dollar you make. But what happens to those fees? There’s no way Visa, MasterCard, Discover, and others are processing payments for free, right?That’s true.Instead, free credit card processing apps use what’s called a credit surcharge program. 100% legal and compliant thanks to the Dodd-Frank Act, credit surcharge programs achieve zero-cost credit card transactions by:
Giving the customer a choice of paying with cash, debit, or credit card
Adding a surcharge if customers pay with a credit card: With NadaPayments’ surcharge program, for example, customers pay a 3.5% surcharge. This ensures that you don’t pay a dime in credit card processing fees.
Ensuring pricing transparency for each form of payment with clearly displayed signage
Listing credit card surcharges as separate line items on receipts
Not allowing the merchant to profit off of the credit surcharge
Not allowing the merchant to charge a fee for debit card payments: With Nadapayments’ surcharge program, the merchant pays 1.0% + $0.25 per transaction if the customer pays with a debit card.
Now that you know what a fee-free credit card processing app is and how it works, let’s dig into why you need one. Whether you own a red light therapy clinic, a hardware store, or a restaurant, you can benefit greatly from a free credit card processing app.
Why you need a fee-free credit card processing app: the red light therapy clinic example
Let’s say you own a red light therapy clinic. First off, congrats! You’ve entered a booming field. The red light therapy market is growing at nearly 5% annually and is expected to reach $1 billion by 2025. More importantly, your services are also helping people. As one WebMD article notes, red light therapy may help promote healing in muscle tissues, skin, and other parts of the body. Now, we know you’ve taken on risk to become a business owner. It can easily cost $150,000 to $300,000 to open a tanning salon, health and wellness center, or similar clinic where red light therapy is offered. Aside from startup costs, you also face ongoing expenses, such as staff, marketing, equipment, and insurance costs. You’ve invested a lot into providing red light therapy to your clientele. You can’t afford to let money fly out the window. But here’s the thing:You’re losing precious profits each time one of your clients swipes a credit card. You may think it’s just 3% per transaction. What’s the big deal? Butlet’s analyze the numbers…Red light therapy or LED light therapy costs between $25 to $85 per session. If you offer package deals, a client may sign up for 10 sessions at once. This can end up costing a pretty penny, so there’s a good chance your customer is using a credit card. After all, as Federal Reserve research shows, credit card usage rates rise as transaction values rise. For this example, let’s say your business generates $300,000 per year in revenue and 60% of that revenue comes from credit cards. Let’s also assume you pay an average of 3.8% in fees per credit card transaction, which is possible once you add on the payment processor markup (see the average fees per network below).
In this case, $180,000 of your revenue is subject to payment processing fees of 3.8%. That means that each year, you pay $6,840 in credit card fees. If you earn profits of $68,000 per year on that current revenue of $300,000, that means you’re losing more than 10% of your potential profits, completely unnecessarily. By using a fee-free credit card processing app, you could earn $6,840 more per year—a salary increase of 10.05%.All you have to do is take the time to get started with fee-free credit card processing.
How you can get zero fee credit card processing
Getting a free credit card processing app is a two-step process. It involves:
Finding the best merchant service provider (MSP).
Integrating a high-quality credit surcharge program.
It’s that easy. So, how do you find the best MSP? First, you’ll want to search for payment processors that not only offer transparent, affordable pricing, but also have solid services and advanced capabilities. Whether you’re running a grocery store, a jewelry shop, or a red light therapy clinic, you want to find a payment processor that can handle transactions quickly and across multiple channels, from in-person payments to virtual terminal credit card processing. As you search for the right MSP, compare each one’s pricing and quality of services. Narrow your list down to the top three for your business. Then, analyze the following fees in detail:
Interchange fee: The merchant pays this to the card-issuing bank, such as Bank of America.
Network fee: The merchant pays this fee to the payment network, such as MasterCard.
Assessment fee: The merchant pays this fee to the card-issuing brand, such as Delta Airlines.
MSP markup: The merchant pays this to the payment processing company. These fees vary based on services and the MSP’s pricing structure. They could include everything from PCI compliance fees to 24/7 support fees.
With the addition of the MSP markup, you may feel that some of these fees are arbitrary. But here’s the good news: You can negotiate those fees! We’ve seen merchants get 5–10% off that MSP markup. That can save you thousands of dollars over time. So, after analyzing the fees, see if you can reduce the markup. Following those talks, go with the MSP that offers you the best value overall. Once you’ve found your MSP, it’s time for the fun part: Eliminating credit card processing fees for good. As mentioned above, it’s easy to get started with a fee-free credit card processing app. Most of them, such as our app at NadaPayments, integrate seamlessly with credit card installment plans. As you shop for a fee-free credit card processing app, make sure the surcharge solution can be successfully installed within your payment system.Once you’ve chosen the right one, a fee-free credit card processing app can be integrated into your payment system within one day. In less than 24 hours, you can finally get rid of transaction fees for good. Even better, your customers can avoid paying transaction fees by choosing to pay with cash or a debit card. This is what makes a surcharge program a win-win for everyone: It’s a fee-free credit card processing solution that boosts profits for merchants and helps customers save money.
Ready for a fee-free credit card processing?
You now know that no matter your business, you can boost your profits by more than 10% just by getting a fee-free credit card processing app.You also know that integrating most surcharge programs and free card processing apps into existing payment systems is a breeze. And, as mentioned earlier, surcharge programs are 100% legal. So, what’s stopping you?In reality: Nothing! You’re all set to get started with fee-free credit card processing. At NadaPayments, we’re ready to help you reduce your credit card processing bill to “nada.” We don’t charge any setup fees, and our app works in store, online, and on the go. We get your surcharge program up and running in no time, so you can start taking home 100% of your revenue. Want to get started? Contact us at +1 (929) 293-1800 or click the link below.