If you own or manage a restaurant, you already know that credit cards are the most common way customers pay for their meals.
While offering credit card payment options is essential, many restaurant owners find themselves overwhelmed by the complexity of credit card processing fees.
Understanding what you’re being charged—and why—can help you reduce costs and make smarter business decisions. Let’s break it down in simple, restaurant-friendly terms.
What Are Credit Card Processing Fees?
Every time a customer swipes, taps, or inserts their card, a small percentage of the transaction amount goes toward processing fees.
These fees are typically divided into three parts: interchange fees, assessment fees, and payment processor markups.
Interchange fees go to the card-issuing bank, assessment fees go to the credit card network (like Visa or Mastercard), and the markup is what your processor charges for handling the transaction.
How Much Do Restaurants Typically Pay?
Restaurants usually pay anywhere from 1.5% to 3.5% per transaction, depending on the card type, processor, and how the card is used (chip, swipe, or online).
Debit card transactions tend to cost less than credit cards, and rewards cards usually come with higher fees.
While these percentages may sound small, they add up quickly—especially if your restaurant processes hundreds of transactions daily.
Other Fees to Watch Out For
In addition to transaction fees, you might see monthly service fees, PCI compliance fees, batch fees, and chargeback fees on your statement.
These extra charges can sneak up on you if you’re not reviewing your statements regularly. It’s worth asking your provider for a detailed breakdown so you know exactly what you’re paying for.
Can You Reduce These Fees?
Yes! Shop around for processors that specialize in restaurants or offer lower rates for high-volume businesses. Consider cash discount programs or setting minimums for credit card purchases to offset the costs. Also, always ensure your point-of-sale system is PCI compliant to avoid extra charges. No Merchant Service Fees can help you navigate all of these options.
Understanding credit card fees doesn’t have to be confusing. With a little knowledge and the right provider, you can keep more of your hard-earned revenue where it belongs—in your business. Give us a call today to learn more.
