As a business owner, accepting credit card payments is a must. But with traditional credit card processors charging high fees, finding a way to process payments for free can be a game changer. In this article, we'll go over everything you need to know about free credit card processing.
What is Free Credit Card Processing?
Free credit card processing refers to a method of accepting credit card payments without any fees. While traditional credit card processors charge a percentage fee for each transaction, free credit card processing companies offer their services without any upfront costs.
How Does Free Credit Card Processing Work?
Free credit card processing companies make their money by offering value-added services or charging customers who choose to use premium features. Some examples of these services include point of sale systems, invoicing, and accounting software.
Advantages of Free Credit Card Processing
- No upfront costs
- No monthly fees
- Competitive processing rates
- Access to value-added services
Disadvantages of Free Credit Card Processing
- Limited features
- Possible lack of customer support
- May require additional hardware or software
- Potential for security issues
Best Free Credit Card Processing Companies
- Square
- PayPal
- Stripe
- Venmo
- Wave
Square
Square is a popular free credit card processing company that offers a range of services, including point of sale systems, invoicing, and online payments. Square charges a processing fee of 2.6% + 10¢ for each transaction made with their free processing plan.
PayPal
PayPal is another well-known free credit card processing company that offers a range of services, including invoicing, online payments, and point of sale systems. PayPal charges a processing fee of 2.9% + 30¢ for each transaction made with their free processing plan.
Stripe
Stripe is a free credit card processing company that specializes in online payments. Stripe charges a processing fee of 2.9% + 30¢ for each transaction made with their free processing plan.
Venmo
Venmo is a free credit card processing company that offers person-to-person payments. Venmo charges a processing fee of 3% for each transaction made with their free processing plan.
Wave
Wave is a free credit card processing company that offers invoicing and accounting software. Wave charges a processing fee of 2.9% + 30¢ for each transaction made with their free processing plan.
Conclusion
Free credit card processing can be a great option for small business owners looking to save money on payment processing fees. While there are some limitations and potential risks, there are several reputable companies that offer free processing with competitive rates and value-added services. Be sure to do your research and choose a company that best fits your business needs.