Royal Capital Payments · Authorized Square reseller
0% credit card processing, explained in plain English.
0% processing means you pay nothing to accept cards. A 4% amount is built into card sales, cash customers pay the posted price, and you keep 100% of every sale. On Square it runs on any plan and any device, is set up with compliant signage and receipt wording, and can be switched back to the flat rate any time. A shop processing $60,000 a month at a 3.2% effective rate keeps about $23,000 a year.
How it works
Two ways to run it. Same result: the ticket covers the fee.
Cash discount
Your shelf price is the card price. Customers who pay cash get 4% off at the register. Both prices show on the Square screen before they choose.
Best for retail, restaurants and any counter that sees cash.
Service charge
Your posted price stays the same. A 4% service charge is added to card payments and shown on the screen and the receipt before the customer pays.
Best for service businesses and invoices where cash is rare.
Either way, the receipt shows the discount or the charge as its own line, and your Square reports show the full sale and the 4% separately, so the books stay clean.
What you keep at 0%
Your numbers, not a brochure’s.
Effective rate is everything on your statement divided by your card volume: the percentage, the per-transaction cents, the monthly fees, the PCI fee. Most owners find it is higher than the rate they were quoted.
Cash discount vs service charge
Which one fits your counter.
| Cash discount | Service charge | |
|---|---|---|
| Posted price is | The card price; cash is 4% less | The cash price; card is 4% more |
| Customer sees | A discount for paying cash | A fee for paying by card |
| Applies to | Every non-cash payment, debit included | Credit cards; network rules don’t allow fees on debit |
| Best for | Retail, restaurants, cafés, salons, markets | Trades, B2B, invoices, businesses that rarely see cash |
| Switch back | Any time | Any time |
Is it legal? Offering a discount for paying with cash is permitted under federal law in every state. Adding a fee to card payments is governed by state law and by the card networks’ rules, which cap the amount, require disclosure before payment, and exclude debit cards; a few states restrict it. We set up the program that is allowed where you are, with the signage and receipt wording the rules require, and we keep it current when the rules change.
Who it’s right for
Most counters. Not every business.
Run 0% if
- Your average ticket is under about $150
- You see cash every day: restaurants, cafés, convenience, salons, barbers, markets, trades
- Margins are thin and processing is one of your top five costs
- You want the price you post to be the price you keep
Stay on the flat rate if
- Most sales are large B2B tickets where buyers negotiate every line
- Your customers almost never carry cash and your state restricts card fees
- You sell mainly online, where the program doesn’t apply
- Your volume is above $250k a year and Square Pro custom pricing is the better lever
What it costs you: nothing. The 4% is paid by card customers. Your Square plan price, hardware price and account are unchanged, and it runs on Square Free at $0 a month.
FAQ
What owners ask before they switch it on.
Will customers get upset about 4% on cards?
Most don’t notice; both prices show on the Square screen before they choose, and the amount on a $30 ticket is $1.20. The ones who do notice usually pay cash, which is the point. Expect a small shift toward cash and almost no lost sales. We help with the signage wording so nobody is surprised.
Does it work on every Square device and plan?
Yes. Square Reader, Stand, Terminal, Handheld, Register and Kiosk all run it, on Free, Plus or Premium. Square Register’s customer-facing screen shows the cash and card prices side by side, which is the cleanest setup for a busy counter.
Can I run it on some items and not others?
It runs storewide. That keeps the signage honest, the math simple, and the program inside the rules. If some of your sales are large B2B tickets, we can talk through whether the flat rate suits that part of the business better.
Does it apply to online orders and invoices?
It is an in-person program. Online orders and emailed invoices stay on Square’s card-not-present rates. For businesses that bill by invoice, a service charge can be disclosed on the invoice; we set that up case by case.
Can I switch back to the flat rate?
Any time, from your Square dashboard. Many owners run 0% during busy season and switch back when their card mix changes. Nothing about your account, hardware or plan changes.
Why 4%?
4% covers the processing cost on a typical card mix, including rewards and business cards that cost more to accept, so your effective rate stays at zero rather than drifting back to half a percent. It is the standard setting for the program.
Get started
Keep 100% of every sale. Set up with you.
Book a free statement review. We confirm your effective rate, pick cash discount or service charge for your counter, and set up the signage, receipts and devices with you.