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Free Credit Card Processing Services

Are you a merchant looking for free credit card processing services? You’ll be surprised that it’s actually possible!

Before getting into how our free credit card processing solution works, let’s review a little about how credit cards work.

A Brief History of Credit Card Processing

In the mid to late 20th century, the invention of the credit card was an awesome thing. These nifty plastic cards delivered a benefit to both consumers and merchants.

For the consumer, a great benefit was the convenience of making purchases without having to carry cash. For the merchant a huge benefit was greater sales revenue from consumers that adopted a ‘buy now, pay later’ attitude.

A win-win all around right? Well maybe. As great of an idea it was, somebody has to pay for it. Free credit card processing services were never part of the plan.

The financial institutions that were the pioneers in this new form of payment had costs associated with the facilitation of electronic funds transfers. Not to mention the costs for the development of card reading equipment, there were costs for the carrying of risk.

In order to cover their costs as well as earn revenue for themselves, the credit card companies created a rate system, now known as interchange. With these interchange rates in place, the card issuing companies would take a small percentage of each sale.

Today, merchant account providers work on behalf of the 4 major credit card brands to facilitate the set up and servicing of credit processing solutions. These companies earn a small percentage of the transaction fee, but the bulk of the processing rate is the interchange fee.

Merchants & Merchant Accounts

Obviously, in order to accept credit cards from customers, merchants must have a merchant account. Most consumers, however, never really consider that paying with a credit card costs the merchant money. For all they know it’s free credit card processing.

With a merchant account, interchange rates to merchants are adjusted as much as twice per year. Usually they go up, not down. An average merchant account rate may be about 2.5%. But with many consumer using rewards cards these days, rates to merchants can be as high as 4-5%.

The customer gets the convenience of using a credit card and can even earn money for using it, yet the merchant has to pay a fee? That sounds kind of backwards, right?

Well, this is why our free credit card processing solution was developed.

Cash Discount Pricing Model

Of course merchants that have a merchant account will always have to pay interchange rates and the merchant account providers small fee on credit card transactions. So our free credit card processing solution isn’t initially free for merchants. However, it becomes free based on the model.

The model is called cash discount pricing. This model is the opposite of charging customers a surcharge for using a credit card. It’s the practice of offering a discounted price to customers for paying with cash.

With cash discount pricing, merchants can offer customers one price for paying with cash and another price for paying with a credit card.

The pricing difference for using a card will offset the merchant account fees, essentially making this a free credit card processing solution for the merchant. And, depending on the percentage difference in pricing, a merchant can actually make money with our merchant account solution.

Of the many merchants using our merchant account solution merchants save greater than 90% on credit card processing fees.

Merchants have the ability to set the cash discount price between 1% and 4% or even a flat dollar fee per transaction. Our merchant account platform automates the entire process, so there’s nothing a merchant has to do or remember when handling every cash or credit card transaction.

Get Started Today

Why wasn’t this system developed from the start? We’re not sure about that. But what we do know is that this is a ‘no-brainer’ for merchants. Every merchant should be using this solution.

Are you ready to get set up with this free credit card processing solution and start saving money on merchant account fees? Give us a call today at 888-383-8056.