Aside from cooking and serving food, the most important process in running a dining establishment is checkout. It doesn’t matter how great your food or service is, if you have a checkout process that’s not efficient, it can damage your reputation.
Modern restaurant owners know their payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... is more a necessity than choice today. Need proof? How much cash do you have in your wallet? Not much? More often than not, people choose to pay with a card, and if you don’t have that option available, they may take their business elsewhere.
Restaurant Credit Card Processing Basics
Whether you’re a brand new eatery or you run an established franchise, offering your customers a fast, easy checkout experience often leads to loyalty.
Before you can offer more than one payment option, you need to partner with a reputable payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services...., also known as an acquirerAny bank, financial institution, and public or private company that maintains a seller’s credit card processing relationship and receives all transactions from the seller to be distributed to the credit card issuing banks.. This is a middleman who handles the facilitation of payments between a credit card network, the customer’s issuing bank, and your restaurant. Payment processors clear and route each payment into your bank account.
When you find a payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services...., the rest is rather straightforward. It usually takes around 10 days or fewer to get up and running–three days for application processing and about a week to set up and test your new system.
One of the most important benefits of a payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... is protection against fraudulent payments. In the event a deceptive transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... does occur, affecting your security, the processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... assumes responsibility.
Is there a catch, though?
As with any added layer of security, there is a cost. Payment processors aren’t free. Each cashless transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... you accept has a fee that can be as much as 4% of the transaction’s value.
Restaurant Point-of-Sale Systems
Some restaurant owners tackle point-of-sale, or POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction., systems incorrectly. Many opt for a POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. system and then locate a payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services..... But if you don’t require very specific features, it’s better to choose your processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... first and choose from their compatible POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. systems.
If you choose your POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. system first, you must choose a processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... that supports that specific system. Usually, this might not be a big deal. For instance, universal POS systems are compatible with multiple payment processors. However, most systems can only be used with just one or very few credit card processors. These exclusive POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. systems allow payment processors to assess higher fees because there is no competition with other providers. An example of a flat-rate solution is Square – their “one size fits all” approach often means your business could end up over-paying, especially as you grow.
Payment Processing Methods You Should Know
Point-of-sale technology has grown beyond being a mere cashless payment method. In fact, not only can these systems take payment via credit and debit cards, but they’ve evolved to contactless methods such as tapping the physical card or just holding a mobile phone near the POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. terminalThe device by which a transaction is transmitted to the acquiring bank..
Customers no longer need to swipe their cards thanks to these improving technologies. Swipe transactions led to many waves of abuse and credit card fraud claims. In response, EMV chip development began, raising the bar for card security features. This chip limits how much data is shared during transactions. When a customer inserts their card, all confidential information remains private. Payment processing systems equipped for chip cards and PCI compliance ensure cybercriminals and other scammers are unable to retrieve your customer’s information.
Unfortunately, for some customers paying with a credit or debit card might not be an option–say, they forgot their card at home or their bank didn’t issue a physical card. Contactless payments, as mentioned above, allow the customer to hold their mobile device (with the appropriate apps installed) over your POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. system for 100% contactless payment.
These various forms of payment began emerging when businesses realized people prefer cashless payment solutions that also offer improved security features – for both the merchantA business that accepts credit cards for goods or services. and the customer.
Typical Restaurant MerchantA business that accepts credit cards for goods or services. Account Rates
So, for all this convenience and protection, what should you expect to pay? Depending on your merchantA business that accepts credit cards for goods or services. services provider, that number can vary greatly. A rough estimate is around 2.75% per transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... for flat-rate processors like Square. This can be a valid option if you’re a small café with very low average ticketThe average amount of each sale made by a merchant. prices ($10 or less) or low monthly volumes ($2000 or less in credit card transactions).
Other providers charge flexible rate transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... fees beginning around 1.9% with a “competitive interchange plus” fee model. If your average transactions are higher, or you have a higher monthly volume than average, this can be a much better solution than a flat rate. Yet remember, not all “interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. plus” providers are low-cost.
Improve Your Restaurant Checkout Process with an Enhanced POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. and Payment ProcessorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services....
If you have reservations regarding the investment in installing or updating a POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. system–that’s normal. After all, it’s up to you if you want your restaurant to be a cash-only business. But society, in general, is moving increasingly towards becoming cashless, which means you must embrace tech advances to remain competitive. By taking the forms of payment your customers wish to use, you can improve your operation and manage your diner, bakery, or bistro with more ease.
While there could be a surge in costs initially, updating your restaurant credit card processing systems has benefits that far outweigh payment options. Updated POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. technology can speed up your business operations and make every process smoother. The added convenience is a win/win for everyone from your customers to your waitstaff and kitchen help.
Questions to Ask Before Choosing Your Restaurant Credit Card Processing Provider
This is a big decision. Great partnerships empower you, offer you the ability to choose what you need, and grant flexibility to your customers–all while keeping your costs low.
On the other hand, getting involved with a bad or one-sided payment processing relationship could mean expensive contracts you don’t understand, that could change at a whim, and that you can’t get out of.
If you need to renovate your restaurant or just hire another server, you have a process by which you choose the best person for the job – you should approach choosing a restaurant payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... in the same fashion. Review your options, interview promising candidates, and compare their services and prices.
Here are some questions to get you started:
1) Are their rates competitive?
Comparing apples to oranges doesn’t work–for your search to be fruitful, take a look at per-transaction costs and flat-fee rates. For instance, your transaction feeA fee charged for each transaction processed by the merchant. This is in addition to the percentage discount fees. might be lower, but the processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... might charge a higher flat fee in order to compensate. Look at this from a broader viewpoint–praise transparency without the complexities.
2) Do you really need a merchantA business that accepts credit cards for goods or services. ID?
If you have a really small café or bakery, maybe not. If you’re an upscale eatery with large volumes, having your own merchantA business that accepts credit cards for goods or services. ID could be crucial.
3) Does the pricing fit?
Compare processors offering the same pricing model to discern the greater value. If the price is right and the processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... offers what you need, you may have found a matchSystem used to track merchants in order to manage risk.. It’s important to see what sets each processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... apart from others.
4) Could there be surprise charges down the road?
You should have a real outline of every charge and potential charge. You should clearly understand your agreement terms, including the scope of the contract and its length.
5) Does this processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... integrate with your current POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. system and software?
For efficiency purposes, it’s a good idea to partner with a payments processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... that offers hardware that can integrate with your current POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. system.
6) Do they offer customer support? Service?
Whether you have a question about a statement fee or your hardware is malfunctioning, your restaurant payments processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... should be available when you need them – especially on evenings and weekends which are often the busiest times for restaurants.
7) Are you locked into your contract? If so, for how long?
Contract lengths and scopes of service vary from processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... to processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services..... More importantly, you should look for a payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... that’s flexible and transparent. It’s a good idea to have your accountant or advisor review the contract prior to signing, just to be certain there won’t be surprises down the road.
8) What’s the company’s reputation?
Read testimonials and case studies regarding how well your potential provider’s service is received from some of its current and past clients. You can find much of this information on the processor’s website–don’t be shy. Reach out to these companies and ask how the processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... is working for them, what they like, and what they think could be improved.
Choosing a Good Restaurant Credit Card Processing Vendor – Partner with NMA
There are so many processors to choose from that finding one that fits your exact needs might seem overwhelming–varying rates, terms, and other features.
If you already have a POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. system at your restaurant, the best course of action is to choose a compatible processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services...., or acquirerAny bank, financial institution, and public or private company that maintains a seller’s credit card processing relationship and receives all transactions from the seller to be distributed to the credit card issuing banks.. Look at the top three companies you discover and ask fellow restaurateurs their advice–don’t just settle on the first one you find. You can also scour online reviews or social media comments for insight.At NMA, We Work for You® is more than just a slogan–we really do what it takes to support your success. If you have questions or need help understanding something better, reach out and we’ll walk you through the process. Ready to discuss restaurant payment processing? Wondering how National Merchants is different? We’re here to help!
At NMA, We Work for You® is more than just a slogan–we really do what it takes to support your success. If you have questions or need help understanding something better, reach out and we’ll walk you through the process. Ready to discuss restaurant payment processing? Wondering how National Merchants is different? We’re here to help!