The Best Credit Card Processing Companies for Restaurants in 2024

When it comes time to settle the bill, most diners want to pay by credit card. But as chip, contactless and mobile payments become more common, restaurants need to find the best credit card processor to rapidly and securely accept all types of payment. Choosing the right processor can be complicated, as each offers different rate structures, fees, features and POS capabilities. We’ve researched the top companies to help you figure out which service will best help your restaurant serve customers and save money.

Pricing for credit card processing can be complex and opaque, so you need to research and read the fine print to make sure you’re getting the best deal.

Most processors offer either flat-rate or interchange-plus pricing. Flat-rate plans charge the same fee for every transaction, while interchange-plus fees vary based on transaction type. A few offer tiered pricing, charging different rates for different card types, which can be complicated and costly.

Expect to pay between 0.15 and 2.6 percent plus $0.06 to $0.10 for card-present transactions. If you take delivery orders online, look for reasonable keyed-in rates. Some plans require a monthly subscription, and you may have to pay other fees, like setup, early termination or PCI compliance.

You should also consider the cost of credit card machines. Some processors offer free terminals, but prices range from less than $50 to almost $2,000 when purchasing equipment. Some solutions include POS software, front- and back-of-house tools, and reporting, which is another thing to consider when weighing overall costs.

A great credit card processing service should go beyond accepting swipe, EMV chip and contactless payments. It should also provide you with the features you need to process payments quickly and keep your restaurant running smoothly. Here are some that do just that.

Easy application and quick approval

Before you can start seating customers and making money, you need to be able to process payments, which is why you should look for a simple application process with fast approval. Some processors boast that you’ll go from sending in an application to charging cards in hours, and others require signing up only.

Rapid deposit time

Running a restaurant requires cash on hand. From tipping out servers to paying for grocery orders, you’ll need money from credit card sales quickly. Most processors deposit funds in your account within 2 days. Some claim faster times, but often for a fee.

PCI compliance

To protect your customers’ information and keep your security top-notch, you’ll need a service that provides PCI compliance. While most processors do, look for one that helps your restaurant remain compliant on your end without charging any additional fees.

Online ordering

Takeout is here to stay. You don’t want to miss out on delivery orders, so look for a processor that has fair rates for online purchases. Many providers will help you build a customized website where customers can browse your menu and pay directly, and the order will be sent right to your POS system.

At-table payments

To provide efficient service, you should be able to take orders and process payments directly from the table. Most providers offer portable terminals that can quickly run any kind of payment anywhere. For restaurants without POS equipment, you can use a virtual terminal on any mobile device. Look for additional features, like splitting checks and adding tips, to take care of payments even faster.

Offline transactions

With the popularity of outdoor dining, not to mention food festivals and special events, you’ll find that you’re serving customers in places your restaurant’s Wi-Fi doesn’t reach. Many processors offer offline credit card processing, meaning a customer’s information is stored in the system and processed when your device gets back online.

Self-service payments

A successful restaurant needs to turn tables. Some processors are now offering self-service payment, like Clover’s Scan to Pay, which allows customers to scan a QR code and pay directly from their phone. You’ll get customers out the door quicker, and your staff will have more time to provide better service.

FYI: Implementing a self-service POS kiosk into your restaurant for ordering and payment can cut customer wait time, free up your staff and even increase sales.

POS software

To ensure that operations run smoothly, a good payment solution should integrate with POS system software. Some processors, like Clover, function as part of a paid POS solution. Others integrate with third-party POS systems, while some offer basic POS software for free, like Helcim.

Add-ons and integrations

Almost all processors allow third-party integrations, so sales data is seamlessly shared with QuickBooks or other accounting software, CRM software, or employee management solutions. The best services offer add-ons to make your restaurant shine, including marketing, kitchen, floor planning and shift tools.

Gift cards

The most successful restaurants don’t just get diners in; they keep them coming back. Some credit card processors include tools to design custom gift cards, which can help you build customer loyalty and drive sales.

Cash advances

Many restaurants are subject to seasonal fluctuations in sales and sometimes might not have enough cash on hand to pay overhead costs. Good credit card processors understand that and offer cash advances. Money is deposited into your business account, and the processor takes a certain percent from future sales until the money is paid back.

Follow these steps to determine which credit card processor is best for your restaurant.

1. Learn the credit card processing basics.

It can be confusing accepting credit cards, as there are many complex steps involved and different processors offer different solutions. Before you start shopping for a service provider, immerse yourself in all aspects of card processing, from merchant accounts to security and compliance.

2. Determine which rates work best for you.

One of the biggest differences between processing companies is how they charge you. Flat-rate pricing, which charges you the same rate despite varying interchange fees, is best for restaurants with a low sales volume. Rates are constant, so you can plan and allocate resources better. For high-volume restaurants, we recommend interchange-plus pricing. The rate you’ll pay fluctuates depending on the type of card being processed. It isn’t as straightforward as a flat-rate service, but it leads to bigger savings. Some companies offer tiered pricing, but we find it to be overly complex and don’t recommend it.

3. Research your options.

Once you know what type of processing you need, start searching service providers. Besides pricing, we recommend looking at what else is included, like software, hardware and restaurant-specific tools. Read reviews and pay attention to the level of customer support. We recommend talking to similar restaurants to see what works for them.

4. Study fees and hardware costs.

Providers aren’t always upfront about the credit card processing fees you’ll be charged. Study the fine print before signing any contract.

Also, consider what hardware you’ll need to run your restaurant efficiently. Most processors sell equipment directly, or you can try third-party resellers. A few offer free credit card readers or POS devices, but be aware that there might be hidden fees. Processors might offer equipment leasing, but we’d avoid it, as you’ll pay more in the long run.

5. Contact a sales representative.

The rates you’ll end up paying depend on not only the processing service, but also the type of restaurant you’re running. Processors will take your risk level, credit, restaurant size and other factors into account. To get the most accurate idea of what credit card processing will cost you, talk to sales representatives. Then, read the fine print, compare plans and choose one that works best for you.

These are the main reasons why using a credit card processing service will benefit your restaurant:

• Accepting any payment anywhere: The days of cash only are long gone, but even the traditional card swipe is becoming outdated. With a credit card processing service, your customers can pay any way they want, from traditional cards to NFC mobile payments. Plus, with portable card readers and offline processing, you can accept payments on the floor or away from the restaurant.
• Turning tables faster: Running a successful restaurant means being able to turn tables quickly. By accepting cards tableside and even allowing customers to pay on their own with QR codes, you’ll cut payment wait time and get new diners in quicker.
• Getting first-rate security: Working with a reputable credit card processor means your customers’ and your restaurant’s financial information is processed securely. It will also help you stay PCI compliant.
• Saving money: Credit card processing fees can add up quickly. Choosing the right processor will help you keep costs down so your restaurant can grow.