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6 Benefits of Having Zero Credit Card Processing Fees

The benefits of having zero credit card processing fees

Would you like to pay fees to your card’s issuing bank whenever you do any credit card transaction? Of course, Not! Here we will discuss the benefits of having zero credit card processing fees.


Usually, most banks provide credit cards where you (merchant) have to pay interchange fees, transaction fees, and assessment fees. In addition, a smaller amount of money is deducted from your account as payment processing fees. But no worry, some banks still offer you credit cards with zero fees, which has multiple benefits.


What are the benefits of having zero credit card processing fees?

The most prominent benefit of having zero credit card fees is that you won’t be charged monthly fees whether you use your credit card for merchant account services or normal transactions. Moreover, in this case, you have an opportunity to get more profits back in your bank.


Let’s look at what other benefits you can avail of when you get a zero-fee credit card.


Advantages of having zero credit card processing fees

Cost savings


Usually, merchants pay around 2% to 4% transaction fee for every credit card payment process. These fees consist of a card-issuing bank, interchange, and assessment fees. While, if you have a zero-fee credit card, you won’t be charged any extra fee no matter how many transactions you do in a day or week. That is the reason a zero-fee credit card saves extra cost to you.


Best for large purchases


What I like about the zero-fee credit card is you can buy high price gadgets and equipment without paying a single penny for the card fee. So, for example, you can buy expensive cameras or Laptops on 0% interest which is profitable.


Send a high amount to anyone


Suppose you are in a business that needs to send payment to multiple people worldwide. Having a credit card with zero fees will be a great asset. You can send a high amount of payments to anyone without any limit or extra charges.


Lower the expenses


If your previous account cuts extra processing fees, a credit card with no cost can be a great business pricing strategy. Thus, you can lower your expenses and cover your profits.


No interchange fees


After every transaction, a credit card holder pays an interchange reimbursement fee to the bank that issues that card. So, if you have a zero-fee credit card, you are free to do any transaction in future.


Zero payment processor markup fees


All the credit card processor networks charge some percentage to run their network. The fee is deducted as the markup covers their operating expenses. But at the same time, if you have a no-cost credit card, you are free from markup fees for a limited time.


Disadvantages of having a zero-fee credit card


  • Limited promotional rate
  • Limited time facility that can be restricted any time from the bank.
  • Hidden conditions you might be not aware of.
  • There is a still chance that you may have to pay a possible interest rate


Final thoughts


Overall if we compare the pros and cons of having a credit card with zero fees, I think the pros are better than the cons. However, because you must like to save your money no matter, it’s for a limited time or long-lasting. Moreover, it would help if you asked your service provider about the terms and conditions applied to the credit card so that you don’t face any payment processing issues in the future. I hope now you have learn some of the benefits of having zero credit card processing fees.


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