Accepting credit cards in your restaurant can help you grow revenue. Choosing the right credit card processor is an essential part of running your business. Different fees and equipment costs may cut into your profits. Follow these five tips for choosing a credit card processor that will work for you.
Confirm POS System Compatibility
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You may already have point-of-sale (POS) equipment and software in place. In this case, choose a credit card processor that’s compatible with your system. Next, check if your POS account offers a merchant account and payment gateway. Your merchant account is an agreement between you and the credit card processor which allows you to accept credit cards.
When a customer makes a purchase, the transaction goes through the payment gateway. When the payment is approved, you receive the funds in your merchant account. If you already have a merchant account, you can add a payment gateway such as Authorize.net. Otherwise, look for a processor that offers both a merchant account and payment gateway.
Shop Around for Affordable Fees
Credit card processor fees affect how much profit you’ll earn on each credit card sale. Compare credit card processors to find one with affordable fees. Look for one-time costs, such as application and startup costs, plus different recurring charges. Generally, you’ll pay a transaction fee and interchange fee on each sale. If your sales are low, you may have to pay a monthly minimum fee. Your processor may also charge a monthly statement and gateway fee.
Accept All Major Credit and Debit Cards
Customers want choices when it comes to which credit cards they use, whether it’s Visa, MasterCard, American Express, or Discover. Your credit card processor agreement should include the ability for your restaurant to accept all major credit and debit cards and keep card information secure. To boost sales, consider a processor that can handle stored value cards, such as gift cards.
Consider Wireless Processing and In-App Payments
Some customers don’t carry credit cards and use apps to pay for merchandise and meals instead. Users store their credit card in the app, and your processor will need to interact with the app to complete the sale. Check that the credit card processor can accept payments through apps like Apple Pay and Google Pay. Consider wireless processing options too, which can help you defend against fraud. When staff can process payments table-side on a tablet, there’s no need for your employees to handle credit cards out of sight.
Talk to Other Business Owners
A referral can also help you choose a credit card processor. If you know other restaurant or shop owners, ask which services they use. Talk about the pro and cons of each processor to help you decide which solution is right for your restaurant’s payment needs.
Remember that you don’t have to rely on your bank’s payment solutions to accept credit cards in your restaurant. Take the time to compare different restaurant credit card processing companies. You may save money on fees and ensure you can accommodate how customers want to make credit card payments.