Choosing The Best Credit Card Processing For Restaurantsby michael bedwell Digital Marketer
If you are running a restaurant then like any other operation of the business, you must make an informed decision about the payment processing system. Most people now feel comfortable using credit cards to pay for things they buy. However, if you don’t choose the right payment processor then you may end up paying more for the transaction. You need to consider some factors before choosing a good payment processor for your restaurant business.
You will rely on the restaurant payment processor for your cash flow. You need to know the fees that you have to pay for the transactions; otherwise, the payment processors might charge you more without you knowing about it. Many payment processors don’t disclose all the fees as it can be complicated to explain each of them. You should find out whether you are getting sufficient service for the fees you are paying. Before signing a contract with them you must read all the terms and conditions. You can also negotiate certain fees if you know what fees they are charging. You should find out if the fees are subject to change and whether there is an option to lock the fees.
The processing fees that you pay are taken by the issuing banks and this fee is called Interchange. Some amount of fee also goes to the Visa or MasterCard. The other fees pay off for the service you get from the payment processor. So, 80% of the fees you pay doesn’t go to the payment processor. You should find out about any additional fees like minimum monthly fees, annual fees, payment gateway fees, chargeback fees, cancellation fees, statement fees, and others.
You can only negotiate the restaurant credit card processing fees. You should find a partner that provides you a competitive rate and gives you the best value for money. The pricing structure of your payment processor can vary. Some offer a tiered structure in which the interchange is divided into various tiers. The enhanced reduced recovery scheme offers a base rate. However, they charge a high percentage of surcharges. Pass-through pricing is another simple structure. It is the interchange fee that is set by Mastercard, VISA, or others.
The credit card processing fees at your restaurant is an expense that is similar to rent or utility fees. You need to provide a good experience for the customers so that they feel comfortable coming to your restaurant. Fraudulent activities often happen in a restaurant, especially when the servers take the guest’s card from the table and swipe it from some other location. To reduce the risk of fraud you should take the credit card machine to the table so that the customers can swipe the card themselves. The payment processor must give you the scope to analyze the transactions to get valuable insights. You should find out innovative ways to impress your customers so that they visit your restaurant frequently. This will also set you apart from the competitors.
Created on Feb 26th 2021 00:15. Viewed 366 times.