How does a merchant pay no transaction fees?

Fency processes all transactions as a payment facilitator on behalf of the merchant instead of payment processing. We pay all the transaction fees, not you. Your POS terminal uses our gateway just like a normal merchant account, yet we manage two payment networks instead of one: the Fency network and the credit card network.

FC is generated as a bonus to the consumer on every credit/debit transaction. This bonus FC works like a rewards coupon. It's only valid at other Fency Merchants in the nearby area and can't be spent anywhere else.

When a consumer checks out at one of our merchants with the Fency Mobile Wallet or their associated credit/debit card, we check how much of their FC balance is valid at that merchant. If they can cover the total at the POS, FC is transferred from the consumer to the merchant. When a consumer does pay with a credit/debit card, they are buying FC from us and sending it directly to you. You can then use your FC to pay invoices from other Fency merchants, pay your employees, re-distribute them as bonuses, or redeem them from us in the original currency...all from your Fency terminal.


Over time, the amount of FC being used in an area outpaces the CC transactions, reducing or even eliminating CC transaction fees.

The payments takes place at no cost to the merchant accepting it. So you're getting 100% of your revenue, not 3-4% taken off the top. This costs nothing to you because all Fency POS terminals are communicating together over the internet and store all FC transactions in a blockchain distributed ledger. Fellow merchants are validating each others balances and transactions instead of relying on banks to do this (and all the fees associated with it).

Article ID: 15, Created On: 7/10/2018, Modified: 7/17/2018

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