Is Zero Fee Credit Processing Possible?

Processing rules change to provides a new way to accept credit cards and offset the cost for businesses. Reverse Fee Processing passes through rates to minimize processing expense.

So how exactly did we accomplish getting a Zero Fee Processing for merchants?

In January of 2013, Visas and Mastercard announced that merchants that accept credit cards can now pass through processing fees to cardholders as a surcharge fee. This allowed Midwest Reverse to provide a Zero Fee Processing program. This was a result of the Frank-Dodd act and Durbin amendment followed by a federal ruling that allowed this rule to pass. The rule states that businesses have the right to pass through fees up to 4%. Our Reverse Fee Program takes advantage of this rule and reverses the fees to the cardholder instead of the business having to pay the rate. That's how our Zero Fee Processing program is allowed in 40 states.

For most flat rates the typical discount rate is generally 2.75% up to 3% including all admin fees. We take this model and created Zero Fee Processing program that will offset the rate and the admin fees as much as possible. To make sure we cover all the card networks we would setup the fee and discount rate that will offset the total cost as much as possible.

So for most merchant the way we would setup the program would be to set a surcharge rate to the customer at 3.25%-3.5%. The technical discount rate for the business would be at 3%-3.25 flat rate. So technically the merchant reverse zero fee rate would be -0.25%, which means that additional 0.25% would go towards admin and service fees from the processor. With that setup...the business is actually getting a better than ZERO Fee Processing.

See How Reverse Fee Works