Is zero-fee credit card processing legit?

Is zero-fee credit card processing legit?

Yes, zero-fee credit card processing is legitimate when done correctly and in compliance with state and federal regulations. It typically works through either:

  1. Surcharging – The business passes the credit card processing fee to the customer at checkout. This is legal in most states but must follow strict rules set by card networks (Visa, Mastercard) and state laws. Businesses must provide clear disclosures and cannot exceed the allowed surcharge percentage (currently capped at 3%–4% depending on the network).
  2. Cash Discounting – Instead of adding a fee for credit cards, businesses offer a discount for customers who pay with cash. When done correctly, this method avoids violating surcharge rules and is allowed in all 50 states.

Many legitimate payment processors offer zero-fee solutions, but businesses must ensure they are compliant with card network rules and local laws. Some shady processors misrepresent their services, so it’s important to choose a reputable provider.

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