What Is Zero-Cost Processing?

Zero-cost processing is a strategy that allows businesses to offset or eliminate credit card processing fees by passing those costs to customers who choose to pay with a card. Instead of absorbing 2-3% on every transaction, you recover that money through either a cash discount program or a credit card surcharge program.

Both approaches achieve the same goal, but they work differently and come with different rules. Choosing the right one depends on your customer base, your state, and how you want to position the program. This guide walks you through both options so you can make an informed decision and start keeping more of what you earn.

Cash Discount vs. Credit Card Surcharge

A cash discount program sets all prices at the “card price” and offers a discount to customers who pay with cash or check. It applies to all card transactions, including debit, and is legal in all 50 states. You can implement it immediately without notifying the card networks.

A surcharge program keeps your base prices the same and adds a fee when customers pay with a credit card. It only applies to credit cards, not debit, and is prohibited in a few states including Connecticut, Massachusetts, Maine, and Oklahoma. You must notify Visa and Mastercard at least 30 days before you start.

The right choice depends on your payment mix, where your customers are located, and how you want customers to perceive the program. Our comparison chart breaks down every factor side by side.

What’s Inside the Zero-Cost Processing Guide

This free download includes three resources to help you evaluate, communicate, and implement a zero-cost processing program:

Cash Discount vs. Surcharge Comparison Chart. A side-by-side breakdown of how each program works, legal requirements, fee caps, signage rules, and customer perception. Includes a quick decision guide to help you choose.

Customer Communication Scripts. Ready-to-use scripts for explaining cash discount and surcharge programs at checkout, over the phone, and in B2B invoicing situations. Covers common objections and how to handle frustrated customers.

ROI Calculator. Enter your monthly sales volume and processing rates to see exactly how much you could save with each program. Includes a 5-year projection and break-even analysis so you know what to expect.

Start Recovering Processing Fees Today

Credit card processing fees add up fast. For a business processing $100,000 per month in card transactions, that could mean $30,000 or more per year going straight to the card companies. Zero-cost processing gives you a way to recover those costs without raising prices across the board.

This guide gives you everything you need to evaluate your options, train your team, and calculate the impact on your bottom line. Download it, run the numbers, and see how much you could be saving.