Top Payment Processors for Eliminating Credit Card Fees (And How Coastal Pay’s Dual Pricing Works)

Let’s Define What “Eliminating Credit Card Fees” Really Means

Honest math first: interchange never disappears. Visa, Mastercard, American Express, and Discover charge interchange on every credit card transaction. No processor can wave that away. What “zero-fee” or “eliminate fees” providers actually do is shift that cost from the merchant to either the cardholder (through dual pricing or surcharging) or to a different cost structure (a flat monthly subscription instead of per-transaction percentage markups).

Three Ways to Reduce or Shift Card Fees

• Dual pricing / cash discount: Display two prices upfront (cash price and card price) and let the customer choose
• Surcharging: Add a separate fee at the end of the transaction when the customer pays by credit card
• Membership pricing: Pay a flat monthly subscription with near-wholesale interchange and minimal markup

Coastal Pay focuses on dual pricing and transparent flat-rate processing, not gimmicks or vague “0%” marketing. This guide is neutral and educational first; we will profile the major specialists in this space, then show how Coastal Pay’s approach is different and where it fits best.

Here’s How the Main Zero-Fee Pricing Models Work Today

Dual Pricing / Cash Discount

Two prices are displayed upfront. Cash buyers pay the lower price; card buyers pay the higher card price that includes processing.

Example: A $100 cash price might display as a $103.50 card price. The merchant collects $103.50 from card buyers, pays approximately $3.50 in processing, and nets the same $100 they would have collected from a cash buyer. From the merchant’s perspective, card processing has been effectively zeroed out.

Surcharging

The headline price is the cash price, and a separate fee is added at the register only when the customer chooses to pay with credit.

Example: A $100 item rings up at $103 with a “3% credit card surcharge” line on the receipt. Surcharging tends to be more sensitive in customer experience because the fee appears as a “surprise” at the end of the transaction. Some U.S. states restrict or prohibit it, and FTC “junk fee” guidance favors all-in pricing models like dual pricing.

Membership Pricing

The merchant pays a flat monthly subscription (typically $99 to $199) for access to near-wholesale interchange-plus pricing with minimal markup. This lowers processing costs significantly but does not eliminate them.

Example: A high-volume retailer doing $80,000/month in card sales might pay $99/month plus interchange-plus 0.10% over actual interchange, dropping effective rates well below 2% but not to zero.

Where Coastal Pay Sits

Coastal Pay’s primary “eliminate fees” tool is its dual pricing program. For merchants who do not want to pass fees to customers, the alternative is the simple flat 2.5% + $0.15 per transaction with no separate gateway fee – lower than Stripe (2.9% + $0.30), Square (2.9% + $0.30 online), and PayPal (2.99% + $0.49) standard rates.

What You Need to Know About Legal and Card-Brand Rules

Every model has compliance requirements. Get them wrong and you risk card-brand fines, state attorney general action, or chargebacks. Get them right and you operate with confidence.

Dual Pricing Rules

• Both prices must be visible before the customer chooses how to pay (not as a surprise at the end)
• Receipts must show the price paid and which payment method was used
• State display rules apply: California, New York, and others require specific all-in pricing approaches

Surcharging Rules

• Credit cards only: No surcharges on debit or prepaid cards under any circumstances
• Caps apply: Visa typically caps at the lesser of 3% or actual cost; Mastercard at 4%; some states impose lower caps (Colorado at approximately 2%)
• State prohibitions: Connecticut, Massachusetts, and a handful of other states restrict or prohibit credit card surcharging
• Network notification: Typically 30 days’ written notice to Visa and Mastercard before launching

How Coastal Pay Handles Compliance

Coastal Pay’s gateway automatically detects debit vs credit and exempts debit from any surcharge or card-price markup. The team supplies compliant signage templates, configures receipts properly, and handles network notification. State-specific rules are reviewed during onboarding so the program launches correctly for your jurisdiction. Coastal Pay’s dual pricing program is built to align with current card-brand guidelines and evolving FTC “junk fee” expectations.

Disclaimer: This article is general information, not legal advice. Confirm specifics with your attorney and compliance advisor before launching.

Which Payment Processors Actually Help You Wipe Out Costs?

Several specialist providers focus exclusively on zero-fee or fee-shifting programs. Here is a quick profile of the major names you will encounter.

• CashDiscountProgram.com: Specializes in dual pricing, cash discount, and surcharge programs marketed as “zero cost credit card processing” for in-person and online merchants. Strong U.S. small-business focus.
• Zero Pay Solutions: Cash-discount program where a small service fee is added on card transactions to offset 90% to 100% of merchant fees.
• FreeForYou (itsfreeforyou.com): Markets a pass-the-fee model under the banner of accepting credit cards “without paying processing fees.”
• Shift Processing: Zero-fee processing positioned for small businesses, adding a fee to card transactions so the merchant’s effective cost is approximately $0.
• NetSimple-style resellers: White-label “zero fee” programs typically resold by local agents, adding a technology or service fee per credit card transaction.
• Invoice Integrators “Pass the Fee”: Zero-percent processing bundles for retail, restaurant, and professional services.
• Honest Merchant Solutions: Dual pricing, surcharging, and “true cash discount” programs.
• Payroc / Paysafe Cash Discount Program: Cash-discount structure delivered via agent networks.

What These Have in Common

All of them shift card costs to the cardholder via surcharge or dual pricing. Where they differ is in transparency, software integration depth, gateway fee structure, contract terms, and whether they support multi-channel businesses (in-person plus online plus invoicing).

Why Big-Name Platforms Are Limited

Stripe and Square are limited on true dual pricing. Square’s surcharge feature is in beta and restricted to specific channels; Stripe has no native U.S. surcharging or dual pricing program and requires custom code or third-party tools. PayPal restricts surcharging in its merchant agreement. This is why merchants seeking to eliminate or substantially reduce card costs typically look at specialist providers – or at Coastal Pay, which combines specialist-grade fee-shifting with broad integration support.

How Does Coastal Pay’s Dual Pricing and Flat 2.5% + $0.15 Model Work?

Coastal Pay offers two clear paths to reduce or eliminate card processing costs. Most merchants choose one; some run a hybrid by location or channel.

Path 1 – Dual Pricing (Effectively $0 Net Card Cost)

Display a cash price and a higher card price upfront. Customers see both and choose how to pay. The card price absorbs processing cost at the moment of sale, effectively zeroing out the merchant’s net processing expense on card transactions.

Example 1 – Quick-Service Restaurant ($25 average ticket)

Cash price: $25. Card price: $25.88. The merchant nets $25 on every transaction regardless of how the customer pays. Across 800 transactions per month ($20,000 in card volume), the merchant retains the full $20,000 instead of paying approximately $580 in processing fees. Annual retained margin: ~$6,960.

Example 2 – Auto Repair Shop ($500 average invoice)

Cash price: $500. Card price: $517.50. On 100 transactions per month ($50,000 in card volume), the shop retains the full $50,000 rather than paying approximately $1,450 in processing fees. Annual retained margin: ~$17,400.

Path 2 – Flat 2.5% + $0.15 With No Gateway Fee

For merchants who do not want to pass fees to customers, Coastal Pay charges a transparent flat rate of 2.5% + $0.15 per successful transaction with the Coastal Pay Gateway included at $0/month. This is meaningfully lower than Stripe, Square, and PayPal standard rates, with no hidden gateway subscription on top.

Mix and Match Across Channels

Many merchants use dual pricing in-store (where buyers see both prices clearly) and the flat 2.5% + $0.15 online (where pricing display rules can make dual pricing more complex). Coastal Pay supports this hybrid through one merchant account and one gateway, with reporting consolidated across all channels.

One Provider for Everything

The Coastal Pay Gateway accepts cards, ACH, Apple Pay, Google Pay, PayPal, Venmo, Klarna, Afterpay, and Coinbase. Plug into your existing POS or e-commerce platform via 2,000+ integrations, configure dual pricing or flat-rate, and start operating with substantially lower card costs.

How Does Coastal Pay Compare to Other “No-Fee” Programs?

Pricing and Structure Comparison

Integrations and Gateway Features

Coastal Pay’s Differentiators

• Instant boarding in approximately 2 minutes vs days or weeks for many specialists
• No standalone gateway fee on either dual pricing or flat-rate plans
• 2,000+ integrations (specialist providers typically have far fewer)
• ACH and 7+ alternative payment methods bundled in
• Transparent published pricing (flat 2.5% + $0.15) vs vague “0%” claims
• Multi-channel support: in-person, online, and invoicing under one account

What Results Can You Expect for Your Business Type and Volume?

Three realistic scenarios at the same monthly card volume so you can see the gap.

What the Savings Buy

• Quick-service restaurant savings (~$13,200/year with dual pricing): covers a part-time staff member or a meaningful equipment upgrade
• Auto repair shop savings (~$29,100/year with dual pricing): covers a full-time technician’s payroll for several months
• Professional services firm savings (~$26,400/year with dual pricing): funds the firm’s full marketing budget for the year

Want a custom estimate for your business? Share your average ticket and monthly volume with a Coastal Pay specialist for a tailored side-by-side comparison.

Get a Free Custom Savings Estimate

Multi-location operators benefit even more, since the savings scale with volume and Coastal Pay’s centralized reporting consolidates all locations into one dashboard without separate gateway fees per site.

How Do You Set This Up Step by Step With Coastal Pay?

1. Click Get Started. Visit coastalpay.com/get-started and begin your application.
2. Complete the brief application. Have ready: business name, EIN or SSN, bank account details, business type, average ticket size, and approximate monthly volume. Your last processing statement helps speed the savings analysis.
3. Get instant approval. Most U.S. merchants are approved through Coastal Pay’s instant boarding in approximately 2 minutes.
4. Select dual pricing or flat-rate. A Coastal Pay specialist walks through your business profile, channels, and state to recommend dual pricing, flat 2.5% + $0.15, or a hybrid.
5. Configure signage and receipts. Coastal Pay supplies compliant counter signage templates and configures terminals, receipts, and online checkout to meet card-brand and state requirements. Network notification is handled by the team.
6. Go live. Brief staff training (10 to 15 minutes per location), activate the program at the POS or online checkout, and begin operating with reduced or eliminated card processing costs.

Integration Examples

Coastal Pay’s 2,000+ integrations include Clover, Lightspeed, Toast, Shopify, WooCommerce, BigCommerce, Magento, QuickBooks, Xero, and more. The Coastal Pay onboarding team confirms compatibility for your specific stack and arranges any necessary configuration during the same call.

U.S.-based support is available 24/7 for setup, staff training, and any future adjustments to your pricing strategy. Call 888-266-1715 for direct help.

FAQ: Common Questions About Eliminating Credit Card Fees

Will my customers push back on dual pricing?

Most merchants see minimal pushback when dual pricing is clearly disclosed at the register, on signage, and on receipts. Customers see both prices upfront and choose – this feels less punitive than a surprise surcharge added at checkout. Coastal Pay supplies compliant signage and brief staff training scripts.

Can I still accept debit cards?

Yes. Card-network rules require that surcharges and card-price markups apply only to credit cards. Coastal Pay’s gateway automatically detects debit and prepaid cards and exempts them, keeping you compliant without manual intervention.

How do refunds work with dual pricing?

When a customer paid the card price and is refunded, the full card price (including the portion that covered processing) is refunded. Coastal Pay’s gateway handles this automatically, so no manual calculations are required at the register.

Can I use dual pricing online?

Yes, in many states. Online dual pricing must comply with state-specific pricing display rules. Coastal Pay configures e-commerce checkouts to show both prices clearly before payment, meeting card-brand and state requirements.

Do I need new equipment?

Most existing POS terminals and e-commerce platforms work with Coastal Pay through its 2,000+ integrations. New hardware is rarely required. The Coastal Pay onboarding team confirms compatibility for your specific stack.

What if my state restricts surcharging?

Coastal Pay’s dual pricing program operates differently from surcharging and is widely accepted in states that restrict explicit surcharges. The team confirms your state’s current rules during onboarding and recommends the right model for your jurisdiction.

Next Steps If You’re Ready to Stop Paying Credit Card Fees

The path to lower or eliminated card processing costs is not complicated. With Coastal Pay you can:

• Eliminate net processing cost on card transactions through compliant dual pricing
• Remove standalone gateway fees entirely and replace them with one transparent rate
• Gain a scalable, integration-friendly gateway with 2,000+ supported tools and full multi-channel coverage

Get a Free Savings Estimate

Get Approved in 2 Minutes

Or call: 888-266-1715

Share your last 1 to 3 processing statements with a Coastal Pay specialist for a side-by-side comparison showing exactly what dual pricing or flat 2.5% + $0.15 would save versus your current setup.

ISVs and partners interested in embedding Coastal Pay’s dual pricing or gateway capabilities into their own platforms can reach out via Coastal Pay’s Partner program.

4,962+ active merchants. $1.6B+ processed. 27M+ transactions. 13 acquiring bank relationships. Registered ISO/MSP with Wells Fargo, Concord, CA and Axiom Bank, N.A., Maitland, FL.