PayCly Blog

Online Credit Card Processing to Get Rid of the Extra Fees That High-Risk Merchants Incurs for Their Business

Perhaps every business owner dreams about having free credit card processing. Avoiding processing fees is a big victory given the work, money, and time they invested in business development. Yet they continue to get a variety of fees, including startup, monthly, yearly, and transactional ones.

Then, retailers could come across some High Risk Payment Gateway providers that advertise a free credit card processing service. Is it real, though? Is it feasible to get rid of the fees that businesses have grown accustomed to paying?

What costs does the merchant incur?

The merchant must collaborate with the payment service provider in order to accept credit card payments (or any other type). Of course, the cost of the services offered by the payment processor falls on the seller. As a result, the company is eligible for both wholesale and markup fees.

The fees for wholesale

Enquiry Now

The merchant cannot avoid these charges. Why so? Because this payment consists of both an interchange fee and a network cost. These are the charges that the credit card networks decide upon.

Exchange rate

The payment gateway processor transfers the fee on to the issuing bank. Despite the interchange fees being determined by credit card networks like Visa, Mastercard, American Express, or Discover, they go to the issuer. This charge often consists of a predetermined amount and a percentage of the transaction.

Depending on the type of payment card (debit, credit, or prepaid) and whether the card is present or not, each credit card network sets its own costs. This fee is what the credit card network charges for handling the transaction facilitation.

Network cost for cards

This cost also comes from the credit card network. It will go directly to the card brand, as opposed to the interchange fee. When compared to the interchange, these fees are lower. Typically, they don't exceed 1%. Yet, there is no way to get away from them.

You must pay for these costs, as you are already aware. Not directly to the card network or issuing bank, but to the payment processor instead Additionally, you are unable to discuss these fees with them. You may see that there is no free credit card payment processing by assuming this assumption. It's extremely improbable that the payment processor will pay those costs on your behalf. The payment processor is ultimately a business that seeks to make money with high risk gateway. It is not a nonprofit. Furthermore, several nations restrict surcharging, which is essentially passing costs forward to customers.

The premium costs

You can agree to different prices for these. Additionally, you can look for the payment processor using these fees. You will ultimately spend less for their services the more adaptable their strategy is. Here are a few markup costs you might encounter.

Setup cost.

The PSP charges this fee for its assistance in opening a merchant account as well as any associated document or legal advice.

Monthly or yearly cost.

That is the ongoing price for the payment processor's service. It primarily applies to account upkeep, technical assistance, and other things.

Fee for online statements.

If a merchant chooses to read or get reports online, he is responsible for paying that fee. Typically, the processor adds it to the total fee amount and does not send it separately.

Payout gateway charges.

The transactions are distributed online by the international payment gateway. In order to cover their costs, certain payment processors may charge for this service. If the CPU doesn't have a gateway, it might occur.

Payback charge.

As PSPs handle chargeback disputes for merchants, it should go without saying that they demand payment from the sellers in exchange for their services.

There are undoubtedly more markup charges. The most adaptable component of your spending is this one. Obtaining a merchant account may not be free. However, you are free to select the payment processor with the lowest price.

Is surcharging equivalent to online credit card processing free of charge?

Let's try to define "surcharging" in order to prevent getting lost in the maze and quell objections about alternatives. No, those two ideas are not the same. We don't want to offend you. The retailer continues to pay the predetermined number of fees and distributes a portion to customers.

The surcharge is typically an extra fee the consumer must pay at checkout. But only credit cards will be accepted for the fee. For instance, if you accept Visa cards, you should talk to Visa about the possibility of surcharging.

And even if you lower the pressure on your prices, your customers might not change their minds. Their interest in your website/webstore will subsequently decline as a result.

So, surcharging might not be the ideal choice if you're wondering "how do I reverse my fees."

Should retailers stop accepting credit cards for free?

Merchants must, regrettably, pay fees. The payment service provider offers its services and knowledge in the field of payment processing, just like any other business. There is therefore no likelihood that you will receive all of this for free.

However, you can look for a payment gateway processor that charges fairly. It will also be quite beneficial to demonstrate a flexible strategy and particular criteria for some merchants. PayCly, for instance, offers reasonable prices. Furthermore, what distinguishes it from other processors as being more advantageous?

  • No yearly charge
  • No recurring charges
  • Zero cancellation fees
  • There is no gateway fee.

Additionally, businesses with frequently high transaction volumes can explore a unique pricing structure. By selecting the appropriate payment processor, you can lower your fees.

I have one more piece of advice for you. When selecting a payment method, be specific (flat-fee or interchange plus). Additionally, as chargebacks are frequently the cause of increased fees, aim to lower the ratio.

Why choose PayCly for getting Online Credit Card Processing?

It is one of the best and most well-tailored local payment gateways available because PayCly is one of the industry pioneers and provides best payment gateway.

With PayCly, you may accept payments using credit cards, and even typical e-wallets with our high risk merchant account. You can accept one-time payments, regular payments, and payment plans with installments depending on the bundle you select.

You'll be happy to know that PayCly connects with all of them if you run an online store on a website. Our extensive feature set makes it the perfect solution for both small businesses and established corporations. Because of its broad variety of capabilities, we can assist e-commerce companies, marketplaces, applications, and more.


Can one obtain free credit card processing, then? Unfortunately, no (for retailers). However, we explained what fees are constituted of in this article. You may choose the payment processor intelligently if you are aware of their types and the reasons why you must pay them.

Additionally, you are aware that some fees are negotiable and may not be necessary to pay. Although you cannot get processing services for free, you can locate something that works for your business. The PayCly staff is happy to address any inquiries.