I hope this is the case, and that it is done additionally with merchants that sign on board.
His response was
If a customer pays with T&Z at a merchant on the Zip platform, the fee charged to the merchant will be the Visa Interchange fee and not the Zip Merchant Service Fee.
to me, that seems they are not charging any other fee other than the interchange fee. However they may have an agreement to charge additionally after the transaction. This was not implied or stated.
there is literally no benefit to zip to onboard a merchant that the customer pays instore(and only instore), unless they have determined other ways to generate revenue from having the partnership
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