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Zero-Cost Processing
What is Zero-Cost Processing?
Zero cost processing refers to passing your credit card processing fees along to your customers. There are several methods, but the ultimate goal is to eliminate all fees.
What is Surcharging?
Surcharging is when you add a fee to your sale, which you pass along to your customer in order to offset processing costs. Surcharging is only allowed in certain circumstances.
What is Cash Discounting?
Cash discounting is the act of giving a discount to customers who pay by cash. Cash discounting is legal in all 50 states - merchants have been doing it for decades.
Surcharge vs. Cash Discount
There are benefits and limitations with both systems. Some businesses will benefit from one program and noth the other - that's where AND's industry expertise applies.
Where am I allowed to surcharge?
Surcharging is legal in 44 states, and is allowed by the card associations. By law, you may not surcharge in Colorado, Connecticut, Kansas, Maine, Massachusetts, and Oklahoma.
Can I surcharge debit sales?
No, you may not surcharge debit or prepaid card transactions. AND's processing technology handles this for you, automatically differentiating between credit and debit sales.
How does the customer see the fee?
This will depend on the specific solution you utilize. All customers will only see a single charge on their card for the full amount, and their receipt will either reflect a surcharge or a cash discount.
Can I surcharge phone orders and invoices?
Yes, you can. Surcharging is allowed on card-not-present transactions. Plus, when you use AND's gateway, you can be setup to automatically include appropriate surcharges.
What is a convenience fee?
A convenience fee is a fixed, flat fee that you add to your sales for the convenience of paying by non-cash means. Convenience fees must be a fixed dollar amount.
Do I need to register with the card brands?
Cash-discount merchants are not required to register with the card brands, whereas surcharging merchants must register. AND handles registration on your behalf.
Do I have to post signage?
Yes, per card association rules, if you intend to offer cash discounts or surcharging, you must post signage alerting customers. AND provides all necessary signage for free!
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