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CREDIT CARD PROCESSING • POINT OF SALE SYSTEMS • ATMS
PAST & FUTURE OF
ZERO FEE PROCESSING
YES, IT'S LEGAL
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Zero fee processing, also known as cash discounting, is a legal and widely accepted payment processing method in the United States.
THE BASICS
THE DETAILS
• The Durbin Amendment, a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act passed in 2010, clarified the legality of cash discount programs.
• This legislation made it easier for businesses to offer discounts to customers who opt for cash or other low-cost payment methods, encouraging more cost-effective transactions.
• As a result, merchants can now confidently implement zero-fee processing solutions to minimize their payment processing costs while staying within the bounds of the law.
ADDITIONAL
INFORMATION
The Durbin Amendment, a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, had several indirect effects on zero fee processing:
Awareness and acceptance: The amendment increased awareness and acceptance of alternative payment processing methods like cash discounting, as merchants sought ways to reduce card processing costs.
Overall, the Durbin Amendment has contributed to the growth and popularity of cash discounting by providing a legal framework, raising awareness, and indirectly making it a more attractive option for merchants looking to reduce their payment processing costs.
THE FUTURE IS ZERO FEE PROCESSING
• Experts predict cash discount programs will expand as businesses seek cost-effective payment solutions.
​• Zero fee processing to become integral part of payment processing landscape as more merchants embrace this approach.
CREDIT CARD FEES WILL CONTINUE TO RISE
• Rising credit card processing fees burden businesses that accept card payments.
• Increasing fees over the past decade have impacted merchants' profitability.
• Continued growth in card usage predicts further fee increases, driving the need for alternative payment solutions.
In conclusion, cash discounting has emerged as a viable solution to the challenge of rising credit card processing fees. By offering customers incentives to use low-cost payment methods, businesses can reduce their dependence on credit cards and offset processing costs. As more and more merchants adopt this approach, zero fee processing is set to become an even more crucial aspect of payment processing in the years to come. By embracing this trend, businesses can navigate the evolving landscape of credit card fees and ensure a more sustainable financial future for themselves.