Checking your restaurant’s bill for credit card processing costs can be a daunting task, especially if you are unfamiliar with the process. Fortunately, there are some simple steps that you can take to make sure you know what you’re paying and when.
First, make sure to check your monthly statement from your merchant services provider. This statement should contain all of your credit card processing costs and fees. Be sure to look at the details line by line as some merchant services companies may charge additional fees in addition to the standard fee for each transaction.
Next, review any other charges that may be present on your bill. These can include monthly minimums, gateway fees, and statement fees. These charges may or may not be included in the total amount of credit card processing costs.
Finally, if you are using a third-party processor, such as Square or PayPal, make sure to read through the terms of service carefully before signing up. These services often have additional fees that can add up over time. Additionally, take the time to compare prices between different processors and make sure you are getting the best deal for your business.
By taking the time to understand your credit card processing costs and shop around for the best rate, you can ensure that you are getting the most cost-effective payment solution for your business. With the right strategies, you can keep credit card processing fees from eating into your profits.
Why Do Card Processing Fees Exist?
Credit card processing fees exist to cover the costs associated with running a payment system. Every time you accept credit cards, your business pays for the cost of the credit card processor, the processing network and other services associated with payment acceptance. Generally, these costs are billed as a percentage of each transaction plus a flat fee.
However, there’s a unique payment culture in Australia that prevents businesses from having to pay card processing fees. If you want credit card readers, you’ll find zero-cost solutions that allow you to surcharge customers rather than taking the brunt of the cost yourself.
Generally, surcharging is allowed for all Visa, MasterCard, American Express, Diners Club and JCB cards, provided it’s done in accordance with certain rules. Thankfully, you don’t need to worry about this because the company providing your credit card reader will help you set up surcharging correctly.
Should You Accept Credit Card Payments?
The benefits of accepting credit card payments are undeniable. Customers prefer to use cards, and by allowing them to pay with plastic, you’re likely to increase sales. But if you have a relatively small and/or low-traffic restaurant, the cost of using credit card readers might outweigh the benefits.
With fee-free EFTPOS solutions, this is no longer a conundrum – you can accept card payments without worrying about the cost. Elsewhere, EFTPOS solutions allow you to track and manage your payments, meaning you can spend less time on admin and more time growing your business.
Make sure you explore all your options this year to avoid overpaying!