Best Restaurant Credit Card Processing: Certified for 2023

a customer handing a waiter a credit card

 

Find the Right Merchant Account and for Your Restaurant

Restaurant credit card processing and is a highly specialized industry that caters to the unique needs of businesses in the food and beverage sector. Whether you run a small food truck or a large national restaurant chain, there are a wide variety of payment processing solutions available to meet your specific requirements.

Given the diverse range of restaurant credit card processors, it's crucial to select the right provider that best suits your establishment's needs. Depending on the size and type of your restaurant, you may require anything from a single iPad POS system to hundreds of traditional countertop terminals. This range of possibilities can make it challenging to identify the ideal solution for your business.

To navigate this complexity, it's essential to work with a credit card processing provider that specializes in restaurant transactions. Such providers below who understand the intricacies of the industry and can help you choose the right system that suits your needs.

Whether you're looking to streamline your operations, lower your processing costs, improve your customer experience, or enhance your security protocols, the specialized restaurant POS and credit card processing providers in this list can help you achieve your goals. With their expertise, you can confidently select the best solution for your business, knowing that you're making a sound investment that will support your long-term success.

How to Choose The Best Restaurant Credit Card Processor

When choosing a credit card processor for a restaurant, it's important to consider the qualities of the best restaurant credit card processors. Here are some key factors to consider:

Merchant Account Transaction Fees

When selecting a credit card processor for a restaurant, transaction fees are an essential factor to consider. Credit card processers charge business owners to process credit card transactions. These fees typically range from 1.5% to 3.5% of the total transaction amount for each sale. These fees can vary for a variety of reasons but the primary factor is the business' level of risk to the processor when it comes to chargebacks and fraudulent card transactions. Restaurants are generally consider to be low risk businesses and usually enjoy the lower rates and fees.

Processing Fee Pricing Models

As mentioned above, processing fees can vary for a various reasons. Although the level of risk is a primary factor, the bottom line cost of accepting credit cards is most affected by the pricing model selected by the processor or business owner. There are three common pricing models that we will cover below.

Interchange-Plus

Interchange fees are fees charged by credit card companies to business owners for processing credit card transactions. These fees are paid by the business owner's processor to the issuing bank of the customer's credit card for each transaction made with a credit or debit card. Interchange fees are charged as percentage of the transaction amount, plus a fixed fee per transaction, and can vary based on factors such as card type, transaction amount, and industry. The fees help cover the costs of operating the payment network, including fraud prevention, customer service, and card rewards programs. Interchange fees are fixed and a non-negotiable cost of accepting credit card payments.

Interchange-plus separates the Interchange fees charged by the credit card companies from the additional fees added by the processor. The “plus” portion of “Interchange-plus” is the additional markup added by the processor. This extra charge covers the processor's costs for providing the service, such as customer support, software, and hardware, and also includes their profit margin.

Interchange-plus pricing is generally considered more transparent than other pricing models because it clearly identifies the different fees and charges, allowing merchants to compare and understand the costs involved. While it may initially seem more expensive than other models, it can be a cost-effective option for businesses with high-volume or high-ticket transactions. By choosing a processor that offers transparent pricing models like Interchange-plus, businesses can ensure they're getting a fair deal.

Flat-Rate

Some processors like Square offer a flat rate for all credit card transactions, regardless of the card type or transaction risk level. With flat-rate pricing the fee for taking a credit card stays the same for every transaction. The only factor that may cause the fee to change is whether the card was used with a reader or keyed into a keypad. Keyed transactions cost more in processing fees.

Flat-rate pricing can be beneficial for new restaurants who need low startup costs and simple pricing. However, flat rate pricing is often more expensive in the long run.

Volume Pricing

Other processors, like Helcim, offer volume discounts or have pricing that lowers transaction fees as your monthly sales volume increases. Volume pricing is best pair with Interchange-plus pricing wherein the processor's markup reduces as sales increase. This is often the most cost-effective pricing model that a restaurant can choose.

Tiered Pricing

Tiered-pricing is a type of credit card processing pricing model where transactions are grouped into tiers based on their perceived risk and cost to process. The tiers are usually labeled as “qualified,” “mid-qualified,” and “non-qualified,” with the corresponding transaction fees.

The problem with this model is that it lacks transparency, and it's challenging for merchants to understand the costs they're being charged for each transaction. The processor may place a transaction in a higher tier, resulting in higher fees, without the merchant being aware of the reason. This can lead to unexpected and often high costs for the merchant, making it difficult for them to budget and manage their finances.

Additionally, tiered-pricing tends to be more expensive than other pricing models, such as Interchange-plus. The processor may mark up the fees significantly, resulting in higher overall costs for the merchant. This can be particularly problematic for small businesses with limited resources, as they may struggle to absorb these fees and maintain their profit margins.

In contrast, transparent pricing models like Interchange-plus are preferred because they provide a clear breakdown of the fees charged by the credit card companies and the processor. This allows merchants to better understand the costs associated with each transaction and can make informed decisions about their payment processing solutions.

In summary, tiered-pricing lacks transparency and can be costly for merchants. It's important for businesses to understand their payment processing fees and consider switching to a more transparent pricing model to save money and make better financial decisions.

Software Fees

Some restaurant point of sale companies may charge a monthly fee for access to their service or additional features, and it's crucial to ensure that the benefits of these features outweigh the cost of the monthly fee. Disputed transactions or chargebacks can result in additional fees, so it's essential to check for any charges associated with chargebacks and the dispute resolution process.

Customization

Consider if the processor offers any customizations that can help you manage your business more effectively, such as detailed reporting or customizable receipt printing.

Payment Data Security

The processor should provide a secure payment processing system that is PCI compliant and protects customer data. This means that customer data is transmitted and stored with encryption that keeps it out of a hackers reach. Data breaches can be very costly to a restaurant (See: Restaurant Sues Elavon Over Data Breach), which can include fines and litigation. Credit card fraud is a serious concern, so look for a processor that offers top-notch security measures, such as tokenization, encryption, and fraud detection.

Payment Integrations

A good restaurant credit card processor will have its own point-of-sale (POS) system or be partnered with a POS that integrates seamlessly. Of if you are already using a third-party POS, you will want to ensure that you can change your processor without any major issues

Reliability

A restaurant merchant services provider will have a reliable payment processing system that minimizes downtime and ensures transactions are processed quickly and accurately. If there are numerous customer reviews complaining of system problems, it may be worth continuing your search.

Dependable Customer Service

Your restaurant merchant account provider should have an excellent customer service team that is available 24/7 to assist with any issues or questions. Hold times should be short and the team should be friendly and knowledgeable. Customer reviews will indicate if this is a problem area.

Mobile Payment Hardware

With the rise of mobile payments, a restaurant credit card processing provider should offer mobile payment hardware for tableside credit card payments. Table side payments allow the server to bring the payment terminal to the customers, which results in faster transactions and reduced fraud. This hardware should be able to accept both chip and NFC payments and allow customers to use digital wallets like Apple Pay, Samsung Pay, and Google Wallet.

Analytics and Reporting

The processor should have a reporting system that allows restaurant owners to track sales, inventory, and customer behavior. Such reports help to ensure smooth operations and opportunities for increased sales.

The Best Credit Card Processing for Restaurants

To end your search, we've compiled the following list of the best restaurant credit card processors. These providers offer restaurant POS software and hardware in addition to fair, transparent pricing and positively reviewed customer service. Some of them are ideal low-cost choices for small mom and pop locations, while others offer scalable options for large and growing food service enterprises. Be sure to check out each company's product and service offerings before giving them a call to make sure they're the best fit for you.


Toast Logo

#1 Toast POS

Comprehensive Restaurant Management Platform

Toast's restaurant management platform is designed to meet the specific needs of the food service industry. It offers a range of features that enable restaurant owners to manage their business more efficiently, including:

  • POS: Toast's point of sale system is intuitive and easy to use, with features such as menu customization, order management, and real-time reporting. It also supports multiple payment options, including touchless payments and ordering, and tableside payments.
  • Inventory Management: With Toast's inventory management feature, restaurant owners can easily track their inventory levels and receive alerts when stock is running low. This helps to reduce waste and improve efficiency by ensuring that the kitchen has the necessary ingredients to fulfill orders.
  • Online Ordering: Toast's online ordering platform allows customers to place orders directly from the restaurant's website or mobile app. This feature increases sales and improves the customer experience by offering a convenient way to order food.
  • Loyalty Programs: Toast's loyalty programs allow restaurant owners to reward their customers for their loyalty, encouraging repeat business and building customer loyalty.
  • Reporting and Analytics: Toast's reporting and analytics feature provides real-time insights into sales, inventory, and customer behavior. This enables restaurant owners to make informed decisions and optimize their operations.
  • Employee Management: These tools enable restaurant owners to streamline their HR processes, improve employee productivity, and reduce turnover. Features include an employee scheduling tool that allows managers to create and edit schedules easily, track employee hours, and manage time off requests. Additionally, Toast's employee management tools allow for payroll integration, so employees can receive their paychecks via direct deposit.

Pricing and Fees

Toast's fees vary based upon the package that the business chooses. These packages are priced different depending on the number of locations of the business, as well as the features and hardware selecting by the business owner. Restaurants that agree to a higher flat-rate transaction fee can lower there upfront costs for equipment, or spend more on startup costs to lower the transaction fee. Custom pricing is also available for higher volume restaurants, which may result in Interchange-plus options.

Learn More About Toast's Fees


Host Merchant Services logo

Host Merchant Services

Host Merchant Services is a Newark, Delaware-based merchant account provider that is well-suited for most business types, including restaurants. The company's products and services include point-of-sale solutions, online marketing tools, mobile credit card processing, gift and loyalty programs, and merchant cash advance. Host Merchant Services also offers a wide array of e-commerce solutions for restaurants that cater to special events.

HMS + Bonsai Restaurant POS

Bonsai POS is a cloud-based POS system designed specifically for the restaurant industry. It offers a range of features, including table management, menu customization, inventory management, and employee management. Bonsai POS is designed to be simple and easy to use, with a user-friendly interface that makes it easy for restaurant staff to process orders and manage their operations. The system also includes analytics and reporting tools that allow restaurant owners to gain insights into their business performance and make data-driven decisions. Additionally, Bonsai POS integrates with various payment processing providers, including Host Merchant Services.

Together, Host Merchant Services and Bonsai POS offer a comprehensive payment processing and restaurant management solution for restaurants. With Host Merchant Services' payment processing solutions and Bonsai POS's POS system, restaurants can streamline their operations, improve their efficiency, and offer a better experience for their customers. The combination of these two solutions provides restaurants with everything they need to manage their payment processing, employee management, and operations, all in one convenient platform.

Pricing

Host Merchant Services has received only positive feedback on public forums, with most reviewers singling out the company's customer service for praise. The company offers interchange-plus pricing with no early termination fees to all of its merchants, meaning that users will enjoy the most transparent pricing model and can cancel service without penalty. The BBB gives Host an “A+” rating, and CPO also gives the company an “A+.”

For more information, visit the Host Merchant Services website or call (888) 727-4538.


PaymentCloud Logo

PaymentCloud

Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving restaurant businesses of nearly any type. This includes “high-risk” dining establishments such as new and experimental restaurants. The company’s products and services include point-of-sale solutions, mobile phone swipers, an online payment gateway and virtual terminal, EMV-compatible terminals, and merchant cash advances. PaymentCloud provides a dedicated account rep to all new merchants for the life of the account.

The company has not received any negative complaints on consumer forums, and it customizes its pricing according to each merchant’s business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”

For more information, visit the PaymentCloud website or call (888) 506-7859.


cdg commerce logo

CDG Commerce

Based out of Port Orange, Florida, CDG Commerce has consistently ranked as one of our top choices for nearly a decade. The company has simple, straight-forward, transparent Interchange pricing for larger businesses. This makes it an excellent choice for restaurants that want affordable and transparent rates. CDG offers a wide range of payment products including wireless and e-commerce processing solutions, and it even has its own payment gateway and virtual terminal called the Quantum.

They also allows restaurants to choose from a wide selection of point of sale software to integrate with.  Unlike large corporate credit card processors where you call into a call center and speak with a virtually anonymous customer service representative among countless others, with CDG Commerce you have the same person available to you for your customer service calls.

For more information, visit the CDG Commerce website or call (888) 393-1079.

Final Thoughts

Selecting a the right restaurant credit card processor is an important decision for any restaurant business. The right processor should offer transparent pricing, excellent customer support, and comprehensive payment solutions that meet the specific needs of the restaurant industry. Additionally, the processor should provide robust security features to protect both the restaurant and its customers' data. Integrating the payment processing system with the restaurant's existing software systems and hardware is also critical to ensure seamless operation. Finally, a processor that offers features such as inventory management, loyalty programs, and online ordering can help streamline restaurant operations and improve the overall customer experience. By carefully considering these factors, restaurant owners can select a credit card processor that fits their unique needs, improves efficiency, and helps grow their business.

Restaurant Credit Card Processing Frequently Asked Questions

What is restaurant credit card processing?

Restaurant credit card processing is the method by which businesses in the restaurant industry accept and process credit and debit card payments from customers.

Why should my restaurant accept credit card payments?

Accepting credit cards makes it convenient for customers to pay and often increases the likelihood of higher ticket averages. It can also speed up the checkout process, increase table turnover, and enhance the overall customer experience.

How does credit card processing work in a restaurant?

When a customer pays with a credit card, the payment information is transmitted through a payment gateway to the issuing bank for authorization. The bank then approves or denies the transaction. Once approved, the funds are transferred from the customer's account to the restaurant's merchant account.

What equipment do I need to process credit cards at my restaurant?

Typically, you'll need a point-of-sale (POS) system that includes a credit card reader. Depending on your specific needs, you might also want a system that includes features like tip adjustments, split bills, and table management.

What are the costs associated with restaurant credit card processing?

Credit card processing involves several types of fees, which can include transaction fees, monthly fees, terminal fees, PCI compliance fees, and more. The specific amounts will depend on the credit card processor you choose.

Can I accept tips on credit cards?

Yes, most modern POS systems allow customers to add a tip directly to their credit card transaction. You can then distribute these tips to your staff accordingly.

What are chargebacks, and how do they affect my restaurant?

A chargeback occurs when a customer disputes a charge from your restaurant with their credit card company. If the dispute is ruled in the customer's favor, the charge is reversed, and you will lose the sales revenue and be hit with a chargeback fee.

How can I avoid credit card fraud in my restaurant?

To minimize the risk of credit card fraud, ensure that your credit card processing system is PCI compliant, train your staff to spot suspicious behavior, and consider using EMV-enabled card readers that can process chip-enabled cards.

How can I choose the best credit card processor for my restaurant?

Look for a processor that offers competitive rates, reliable customer support, and a range of services that meet your specific needs (such as mobile payments, online ordering, etc.). Also, check reviews and recommendations to get a sense of other customers' experiences with the processor.

What are the alternatives to traditional credit card processing for restaurants?

Aside from traditional credit and debit cards, many restaurants now accept mobile payments like Apple Pay or Google Wallet, online payments for takeout or delivery orders, and even cryptocurrency in some cases.

Reader Comments

Tell Us What You Think

3 User Reviews

  • Michael Kasmar

    Wow, I just stumbled upon your article about the ‘Best Restaurant Merchant Account Providers,’ and I couldn’t be more grateful! As a small restaurant owner trying to navigate the complex world of payment processing, your piece was an absolute lifesaver. Your comprehensive breakdown of the top providers, their features, and the pros and cons of each really helped me make an informed decision.

    I had been struggling to find the right merchant account provider that could cater to my restaurant’s specific needs and ensure seamless transactions for our customers. Your insightful analysis not only saved me time but also saved me from potential headaches down the road.

    I can’t thank you enough for putting together such a valuable resource. Your expertise and attention to detail shine through in every word, and I appreciate the effort you put into researching and sharing your knowledge with us.

    Thanks to your article, I am now confident in my choice of merchant account provider, and I’m optimistic that it will positively impact my business. Please keep up the fantastic work and continue to enlighten us with your valuable insights!

  • gregory

    I couldn’t resist expressing my heartfelt gratitude for your outstanding article on the ‘Best Restaurant Credit Card Processing.’ What a lifesaver it has been for me and my restaurant business!

    As a restaurant owner, navigating the complex world of credit card processing has always been a daunting task. Your in-depth analysis of the different options available, along with their features and benefits, has been an eye-opener. I feel like I have a much better grasp on what to look for in a credit card processing solution now.

    Your writing style is not only informative but also engaging, making it a joy to read through the entire article. It’s evident that you’ve done extensive research and have a genuine understanding of the challenges faced by restaurant owners like me.

    Thanks to your invaluable insights, I am now equipped with the knowledge to make a well-informed decision that will undoubtedly optimize our payment processing system and enhance the overall dining experience for our customers.

    I can’t thank you enough for your dedication to helping small business owners like me succeed. Your article is now bookmarked as my go-to reference whenever I need guidance on credit card processing.

    Keep up the exceptional work, and please know that your efforts are making a significant impact in the restaurant community. I’ll be sure to share your article with fellow restaurateurs who could benefit from your expertise

  • Mathew

    As a restaurant owner myself, I know how crucial it is to find the right credit card processor that fits your establishment’s unique needs. This article does a great job of breaking down the various factors to consider, such as transaction fees, pricing models, and payment data security. I appreciate the emphasis on transparent pricing and the importance of customer service, which can make or break your experience with a processor. Overall, this is a helpful guide for any restaurant looking to choose the best credit card processor for their business.

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