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Credit card processing can be vital to your restaurant needs, as it can boost your sales and attract more customers if you accept credit cards. Most customers walk into a restaurant with some type of electronic payment method. Cash is becoming less common and customers do not want to have to visit their banks on a regular basis. Convenience is key and restaurants should require several payment methods to attract a larger client base.
Restaurant Credit Card Processing Types
Different restaurants have different needs when it comes to credit card processing. For instance, a fast food restaurant would require a quick service for their processing needs, which tends to be very straightforward, whereas a full service restaurant would require more due to tips, bar bills combined with dinner bills, and the ability to separate a single bill for more than one credit card. Full service restaurants also need to have a merchant account that will be compatible with their point-of-sale (POS) software and equipment systems.
Wireless credit card terminals are now available and used more and more by restaurants. This type of terminal allows the waiter to take the order and process it while at the table.
Process Other Types of Cards
More often, customers are paying with debit cards, gift cards, and if you run a full service restaurant, your customer may write a check to pay their bill. It is up to you as the restaurant owner to establish your acceptable payment methods. As a merchant account provider, you will be responsible for all processing. Here is a quick list of the three common payment services:
- A debit card is the closest form of payment to a credit card and you can process some debit cards the same. Others may require a personal identification number (PIN) in order for the purchase to take place. You may offer the PIN option to your customers, but you must be sure your terminal has a PIN pad.
- Gift cards are great for business, but you must be sure your merchant account provider can process them before you offer the service.
- Check verification equipment and processing services can be found through your merchant account provider, provided they can process this form of payment. Check with your provider to be certain you can accept checks for processing. It will protect your business if you can run check verification.
- Credit cards can be processed through a processing terminal. Make sure your equipment is working properly.
There are several types of fees involved with your merchant account and acceptance of certain forms of payments:
- Credit card processing fees vary by provider and the more you understand the fees involved, the more it will help you decide on which provider to choose for your restaurant.
- Set-up fees vary by provider and can include the application fee. Some providers will charge you to initiate the account, and others may waive the fee. It can save you money, but don’t base your decision on this fee alone.
- Account fees are maintenance fees and can be a monthly or yearly charge, or both. Know how much these fees will be before you sign your service agreement.
- Transaction fees come in two types: discount rate based on percentage of each transaction, and a flat rate per transaction. It is important to know what these fees are because they could add up quickly.
- Your provider sets monthly minimum fees, and if your transactions do not reach the minimum, you will still pay this amount, so be sure you are clear on what your company's minimum standards are.
- Cancellation fees may occur if you decide to cancel your contract with your provider before it ends. Read the fine print and know what this amount is, and if these fees will apply to you.
