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What We Look For in the Best Free Credit Card Processors1. Leaders Merchant Services: Best for Small Businesses That Want to Use Cash Discounting2. Stax: Best for High-Volume Businesses Interested in Surcharging3. PAYARC: Flexible Cash Discount Programs4. PaymentCloud: Best for High-Risk Businesses Looking for Free Credit Card Processing5. Flagship Merchant Services: Best Free Processing for Cost-Conscious Small Businesses6. ProMerchant: Best Zero-Cost Processing for Retail and RestaurantsStart Saving With Free Credit Card Processing TodayFAQ
While free credit card processing sounds too good to be true (and is), there are methods to bypass or lower your processing costs. Some credit card processors will offer ways for you to cut out the credit card processing costs (surcharging) or provide an incentive for your customers to pay in cash (cash discount).
As an economics scholar who researches credit card processing for a living, I often see companies that offer “free” payment processing but will end up overcharging for other features or hide additional fees and conditions in the fine print. Some may even turn out to be scams run by disreputable credit card processing companies.
There are also some limitations to these services that you need to be aware of. For example, if your business is based in Connecticut and Massachusetts, surcharging is illegal. Cash discount, on the other hand, is legal everywhere when implemented correctly, but staying compliant can be tricky.
I’ve done extensive research into this topic and handpicked processors that offer the best support for zero-cost processing. My top recommendation is Leaders Merchant Services’ (LMS) affordable cash discount program. It also offers custom pricing, starting with a low monthly fee for the basics and add-ons available to purchase separately. Its pricing model ensures that you’ll never have to pay for anything other than the features you really need.
Check out LMS or keep reading for more processors with zero-cost processing programs and reasonable transaction rates.
Short on Time? These Are the Best Free Credit Card Processing Companies in 2024
- Expert’s ChoiceLeaders Merchant ServicesLeaders Merchant Services is a popular choice with our readers– Affordable credit card processing and great pricing for small, low-risk businesses.
- Stax – Predictable pricing, advanced software tools, and considerable savings if you process more than $8,000/month.
- PaymentCloud – Surcharging and cash discount programs for high-risk merchants.
What We Look For in the Best Free Credit Card Processors
While doing my research for the best zero-cost payment processors, I focused on the following features:- Support for in-person and online transactions. All the processors on my list provide hardware and software that automatically applies a surcharge based on the card type. Some even provide signage to inform your customers of any surcharging or cash discounting programs in place.
- Fair pricing. I chose credit card processors with reasonable monthly subscriptions that offer the best overall value – and some don’t even charge an extra fee for zero-cost processing. My top recommendations also offer the lowest transaction fees in the industry, with the option to pay them or pass them on to your customers.
- Flexibility to choose your zero-cost processing program. Some of the processors on my list offer both credit card surcharging and cash discount programs. While surcharging only applies to credit card payments, cash discount programs also allow you to eliminate debit card fees.
- Free point-of-sale (POS) equipment. In addition to zero-cost processing, all the credit card processors on my list provide you with at least one piece of POS equipment for free.
- Security and compliance. In addition to being PCI compliant, the payment processors on my list provide various security tools to protect your business and your customers’ data, including tokenization, multi-factor authentication, end-to-end encryption, and advanced fraud detection and prevention.
Free Card Reader
Our Score
Our Score
Best Credit Card Processor in 2024
Negotiable Low Credit Card Processing Rates
Monthly Fee:
$9
Transaction Fee:
From 0.15% + $0
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
Features and Benefits
- Meet-or-beat guarantee. If you’re processing elsewhere, LMS can prepare an analysis of what you’re currently paying vs. their offer. If it can’t offer you a better deal, you’ll get a $200 gift card.
- Flexible business funding options. LMS gives you access to business loan funding and merchant cash advances that, if approved, will be paid back through small deductions on future sales. These options are very helpful for new and small businesses that can’t afford to put up collateral or need funding to cover operating costs.
- Personal point of contact. You can save time by calling or emailing your dedicated agent directly without having to repeat yourself to a new agent every time you contact support.
- Powerful payment links. You can brand these payment links with your logo and enrich them with special offers and ads. When sent directly to your customers, you’ll stimulate repeat business and provide access to your social channels and website.
Free credit card processing program | Cash discount (custom pricing) |
Hardware |
|
Supported payment methods | Credit and debit cards, ACH, bank transfers, digital wallets |
Transaction fees on cheapest plan | ~0.15% + $0 |
Monthly fee on cheapest plan | $9.00 |
2. Stax: Best for High-Volume Businesses Interested in Surcharging
Our Score
Our Score
Save Up to 40% on Credit Card Processing Fees
Monthly Fee:
From $99
Transaction Fee:
From 8¢
Pricing Model:
Subscription
Subscription
With subscription-style pricing, you’ll pay a fixed monthly fee instead of a percentage-based markup on each credit and debit card transaction. While this will considerably reduce your per-transaction fees, you’ll typically still pay a small flat fee on each transaction. This amount is unaffected by the variable interchange fees charged by the different card networks (e.g. Visa, Mastercard), helping to keep your payment processing fees more predictable.
Features and Benefits
- Free payment management software. As a Stax customer, you can use its sophisticated payment software on multiple devices at no extra cost. It allows you to manage invoices, accounting, and reviews, and gives you access to performance analytics from one centralized place.
- Free mobile app. Stax’s mobile app enables you to turn any handheld device into a POS system. It can save you a lot on equipment, as you can use your mobile devices to process payments. It also allows you to access in-depth business insights and manage your business on the go.
- Free equipment of choice. Stax lets you choose between a SwipeSimple, Dejavoo, or Pax terminal, depending on what suits your needs.
- Invoicing tools included in the monthly rate. If you offer regular services, you can set up recurring payments to automatically collect money. You can also send branded payment links, enabling customers to complete transactions in seconds. Text2Pay is a unique feature that allows your customers to pay by responding to your texts.
Free credit card processing program | Surcharging (included in monthly subscription) |
Hardware |
|
Supported payment methods | Credit/debit cards, many digital wallets, ACH, and bank transfers |
Transaction fees on cheapest plan | 8¢ + interchange (in-person) |
Monthly fee on cheapest plan | $99.00 |
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3. PAYARC: Flexible Cash Discount Programs
Our Score
Our Score
Custom Payment Processing Plans With No Hidden Costs
Monthly Fee:
From $69
Transaction Fee:
From 0% + 15¢
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
Features and Benefits
- Free recurring billing. You can improve your cash flow with subscription-based selling at no additional cost.
- Advanced chargeback management. Chargebacks are hard on any business, even more so if your budget is tight. PAYARC goes above and beyond to help you prevent, reduce and manage chargebacks. The processor will even create a personalized chargeback mitigation plan for you at no extra cost.
- Reduced rates for non-profits. PAYARC is one of the few processors that provides its services at wholesale rates to registered non-profit organizations. The reduced rates apply to accepting online and in-person donations.
- Free terminal with some plans. Depending on the plan and your negotiation skills, you can get a PAX A920 terminal for free. It’s a portable device with a long-lasting battery, making it convenient to take payments remotely.
Free credit card processing program | Cash discount (no extra fee) |
Hardware |
|
Supported payment methods | Credit cards, debit cards, digital wallets (Apple Pay and Google Pay), ACH |
Transaction fees on cheapest plan | 2.5% - 4% (customer pays) |
Monthly fee on cheapest plan | $0 |
4. PaymentCloud: Best for High-Risk Businesses Looking for Free Credit Card Processing
Our Score
Our Score
Affordable Rates & Advanced Security Features for High-Risk Businesses
Monthly Fee:
$14
Transaction Fee:
From 2.1% + 15¢
Pricing Model:
Interchange plus
Interchange plus
Interchange-plus pricing involves two fees for each credit or debit card transaction. The first is the interchange fee, a variable amount set by the card network (e.g. Visa, Mastercard). The second is a markup fee charged by the payment processor, typically a percentage of the transaction amount plus a small flat transaction fee. This allows you to see exactly how much of what you pay goes to the card networks and how much to the payment processor.
Features and Benefits
- No PCI compliance fee. Most processors charge between $70 and $120/year for PCI compliance. At PaymentCloud, this fee is included in the already reasonable monthly subscription rate.
- Paysley integration. This integration allows you to create custom payment links and QR codes that customers can use to pay within seconds. There are also tipping features for the food service industry and donation pages for charities.
- Free terminal with a two-year contract. You get one free PayAnywhere 2-in-1 reader that allows you to process EMV and magstripe cards. (If you terminate your contract early, you’ll have to return the complimentary device.)
- Personal account manager. PaymentCloud will assign you an account manager from day one. Your account manager will provide personalized guidance throughout the setup process and help you with any issues that might arise.
Free credit card processing program | Surcharging for in-person transactions only and cash discount (no extra fee) |
Hardware |
|
Supported payment methods | Credit/debit cards, ACH, MOTO, digital wallets, including PayPal, e-checks, bank transfers, cryptocurrency |
Transaction fees on cheapest plan | Around 2.1% + 15¢ |
Monthly fee on cheapest plan | $14.00 |
5. Flagship Merchant Services: Best Free Processing for Cost-Conscious Small Businesses
Our Score
Our Score
Fast Onboarding & Quick Payouts With Same-Day Funding
Monthly Fee:
From $15
Transaction Fee:
From 1.58% + 19¢
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
Features and Benefits
- Free premium-quality POS. Flagship is one of the rare credit card processors that offers expensive POS equipment, like a Clover Mini terminal, for free. A free EMV-certified terminal is also an option. Any equipment that you get from Flagship will be automatically programmed to add surcharges and deduct cash discounts.
- iAccess software. Flagship’s management software allows you to create invoices, set up recurring payments, track performance, and manage your entire business from a single dashboard.
- Dedicated account manager. Flagship sets you up with an agent right from the start. You can reach your account manager directly without getting stuck in customer service loops.
- Fast payouts. Flagship will release your funds within 48 hours as standard. Same-day funding is also available as an add-on.
Free credit card processing program | Surcharging and cash discount (custom pricing) |
Hardware |
|
Supported payment methods | Credit/debit cards, digital wallets, ACH, bank transfers |
Transaction fees on cheapest plan | 1.58% + 19¢ (in person) |
Monthly fee on cheapest plan | $7.95 |
6. ProMerchant: Best Zero-Cost Processing for Retail and Restaurants
Our Score
Our Score
Interchange-Plus & Zero Cost Processing Plans Ideal for Restaurants and Retail
Monthly Fee:
$7.95
Transaction Fee:
From 3% + 10¢
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
Features and Benefits
- High approval rates. A business with no credit or poor credit score is a red flag for many processors, but not for ProMerchant. It will likely offer you a merchant account regardless of your credit score.
- Fast and easy setup. You can start processing in-person credit card payments within 72 hours of contacting ProMerchant. It usually approves new accounts within 2 to 24 hours and will ship your equipment overnight to speed up the process. For online payment processing, you can expect a 48-hour turnaround.
- Next-day payouts. Next-day funding – a benefit that most processors charge extra for – is standard at ProMerchant. You’ll receive next-day funding for all transactions processed by 8:30 pm EST.
- PCI compliance fees included. You can save up to $120/year in PCI compliance fees as a ProMerchant customer as these fees are automatically included in your monthly account fee.
Free credit card processing programs | Zero-cost processing plan for restaurants and retail (custom pricing on monthly fee) |
Hardware |
|
Supported payment methods | Debit and credit cards, PayPal, Google Pay, Apple Pay, Visa Click to Pay, and ACH |
Transaction fees on cheapest plan | Custom |
Monthly fee on cheapest plan | $7.95 |
Start Saving With Free Credit Card Processing Today
Free credit card processing doesn’t mean that you won’t ever have to pay to process payments, but my recommendations can definitely lower your overall credit card processing fees. If you’re a low-risk, budget-conscious small business, LMS’s excellent cash discount program and affordable rates are your best bet. Plus, it offers a variety of instant funding options, including cash advances and fast business loans. It’s a great option if you’re just starting and could use the cash to sort out some priorities. PAYARC’s flexible cash discount programs offer something for every business. You can use its free cash discount program to apply a 4% discount to cash transactions or upgrade to a premium plan for a lower discount. It also integrates with reliable international gateways, making it the best option if you sell internationally. PaymentCloud’s zero-cost processing programs cover in-person surcharging and cash discounts, allowing you to select what works best for your needs. It also offers the most reasonable rates for high-risk merchants.Here’s a bite-size comparison table that will show you which of the zero-cost credit card processors is best for your business.
Best Feature | Best For | Monthly fee on cheapest plan | Transaction fees on cheapest plan | ||
Leaders Merchant Services | Low-priced cash discount program and rates for all the essentials | Low-risk businesses with low credit card processing volume | $9.00 | ~0.15% + $0 | |
PAYARC | A free cash discount program and robust support for international transactions | Both high- and low-volume businesses and online businesses that sell internationally | $0 | 2.5% - 4% (customer pays) | |
Payment Cloud | Surcharging and cash discount programs at no extra cost and reasonable rates for high-risk merchants | Businesses looking for a processor with solutions developed specifically for high-risk sectors | $14.00 | Around 2.1% + 15¢ | |
Flagship Merchant Services | Affordable zero-cost processing programs and high approval rate | New businesses with no credit history or businesses with bad credit | $7.95 | 1.58% + 19¢ (in person) | |
ProMerchant | Zero-cost processing plan for retail and restaurants | Retail and restaurants looking to save on credit card processing fees | $7.95 | Custom | |
Stax | Comprehensive surcharging capabilities and unique subscription-based payment model | Established businesses that process more than $8,000/month in credit card payments | $99.00 | 8¢ + interchange (in-person) |