The Best Credit Card Processors for Restaurants in 2024

We researched the top processors to help you find the best credit card processing company for your restaurant. The best processors have low fees, make it simple to get paid and provide customer support when you need it. When choosing our top processors for restaurants, we looked for providers with low rates and fees, online ordering and point-of-sale (POS) devices for tableside payment. This guide dives into our best picks as well as information on pricing, features and contracts for restaurant credit card processing.

What Is Credit Card Processing?

Credit card processing is the process of transferring funds from a cardholder’s account to a merchant’s account when a credit or debit card is used for a purchase. Although the front-end process is quick and straightforward, behind the scenes, it becomes intricate as data navigates between the restaurant, processor, credit card network and multiple banks. [Read more in our guide to credit card processing.]

Credit card processing rates are typically represented as a percentage of the sale, along with a small per-transaction fee. On average, these range from 2% to 4% for each transaction. The processor evaluates several factors to determine the fees, such as your monthly processing volume, average ticket size and processing history. Additionally, your business and personal credit may also come into consideration.

No matter your business’s size or type, credit card processing fees work the same way across the board. Interchange fees are a nonnegotiable fee set by the card networks and every processor pays the same amount. However, a restaurant may not pay the same interchange fees as a retailer. You can view interchange rate tables on the card networks’ websites. Assessment fees vary by card brand and every processor pays the same amount. Processor fees are taken by the credit card processor; this is the only negotiable part of the processing rate.

Credit card processing companies offer several pricing models for restaurant owners, the most prevalent being tiered pricing. This model aims to simplify the interchange table by consolidating interchange rates, assessment fees and markups and then grouping them into tiers. It is also commonly known as “bundled pricing” or “bucket pricing.”

The interchange plus pricing model, also known as “pass-through pricing” or “cost-plus pricing,” is favored by most industry experts due to its emphasis on pricing transparency. In this model, the processor passes on the interchange rates and assessment fees to you at cost and adds a fixed markup. Flat-rate pricing involves charging a fixed percentage rate for each sale, regardless of the card type used. Some processors may combine this with a per-transaction fee.

Apart from processing rates, you will encounter several fees when you select a credit card processor. Some of these fees are one-time or per-occurrence charges, while others are billed on a monthly or annual basis. These can include the statement fee, monthly minimum fee, Payment Card Industry (PCI) compliance fee, payment gateway fee and network fee. Batch fees, chargeback fees and nonsufficient funds fees may be assessed on a per-occurrence basis.

In addition to the standard fees mentioned earlier, some processors impose various miscellaneous fees. Among the most egregious are cancellation fees, club or membership fees and fees for vaguely defined “additional services” mentioned in the contract. It is crucial to thoroughly read the entire contract before signing anything, and you must ensure that no hidden fees are tucked away in the fine print. For a comprehensive list and detailed explanation of fees, including nonstandard charges that should be avoided, refer to our small business guide to credit card processing fees.

No matter which credit card processing service you select, you should expect it to provide the basic services that you need to accept payments. Restaurants require a different set of features than other types of businesses, including the ability to accept payments online, over the phone and in person. Integrations with third-party restaurant software are also desirable.

POS Hardware

To accept credit cards in person, a restaurant must have credit card processing equipment. Credit card processing hardware takes many forms. The most basic hardware options are mobile readers that allow you to accept payments using a smartphone. If you are on a tight budget or if you run a food cart or similar small restaurant business, then you may want to consider a mobile processing solution, such as a Square reader.

Handheld readers and tablets are popular in the restaurant industry, given their usefulness for accepting tableside payments. You might also consider full registers for restaurants where customers order and pay at a counter.

Online To-Go Ordering

Rather than dining in, many restaurant customers prefer ordering from a smartphone app or internet browser. The best credit card processors include software that allows you to build a website for your restaurant, complete with an interactive menu, checkout page and online payment technology. You can also accept orders over the phone by using a virtual terminal to key in credit cards. Virtual terminals are included in many processors’ software packages.

Multiple Payment Methods

Restaurant patrons generally expect to be able to pay with any credit card that they have in their wallets. Credit card processing software should allow you to accept all major card brands, including Discover and American Express. Additionally, credit card processors empower you to accept a variety of payment methods so you don’t lose out on sales. These include chip-enabled credit cards, tap-to-pay technology and mobile wallets, such as Apple Pay and Google Pay. These modern payment methods are faster and more convenient for diners, enabling you to speed up your restaurant’s operations.

Security

Cybercrime plagues businesses of all sizes and restaurants are no exception. Credit card processing software includes security measures to protect you and your customers from data theft. The best options adhere to the PCI Data Security Standard and assist you in achieving PCI compliance. EMV-compliant hardware also helps minimize your vulnerability to fraud. In case of a security breach, you won’t be held liable for using outdated equipment.

Third-Party Integrations

Many restaurants now use apps designed for the food service industry. These include third-party delivery services, such as DoorDash, Grubhub and Uber Eats. Many diners also now use online reservation software to secure tables at their favorite establishments. You may also use POS and accounting software to streamline your restaurant’s operations. Today, many of the best credit card processors for restaurants also integrate with these additional apps.

Restaurant owners can follow this checklist to choose a credit card processor that works best for their business.

1. Conduct preliminary research.

First, put together a preliminary list of the leading credit card processing companies for restaurants. Our guide identifies five of the best options for restaurant owners, and you can also check out our full list of the best small business credit card processors. You should also know your restaurant’s average monthly sales volume and other business statistics because these numbers will factor into how much you pay for processing services.

2. Examine rates and fees.

Review the rates charged by each processor on the list. Some credit card processors merely take a percentage of the sale while others take both a percentage of the sale and a small flat fee (interchange plus pricing). A processor with a flat-rate pricing model may only charge a monthly subscription fee. Estimate how much you would pay under each processor and rule out any options that don’t fit within your budget.

3. Identify your restaurant’s processing needs.

How do your diners typically pay for their food? Do they order at a counter or with a server while seated at a table? Does most of your restaurant’s business come from online delivery channels? These are questions that you should ask yourself before committing to a credit card processor. Make sure you review which features are included in the software because not all processors provide the tools to accept online orders and other niche services.

4. Choose your hardware.

Some credit card processors offer their own proprietary hardware, while others integrate with third-party hardware. Either way, the hardware should help facilitate your restaurant’s processing needs. If you expect to take payments beside a customer’s table, then make sure that your processor offers handheld devices. Some credit card processors offer free equipment while others charge separately for POS hardware. This equipment can be pricey, so ensure that whatever you choose falls within your budget.

5. Decide if you will lease or buy equipment.

Some credit card processors offer free equipment while others sell or lease the hardware that restaurants need to accept payments. Purchasing equipment is often more cost-effective and less constrictive in the long run compared to other equipment alternatives. While “free” is always alluring, remember that accepting free equipment often requires you to stay locked into a contract.

6. Consider customer testimonials.

Customer reviews are a powerful source of unbiased information. Independent review sites, such as Trustpilot, are composed of user-generated content on customer service. Many credit card processors and other software services talk a big game on customer service, but not all of them follow through. In recent years, many business apps have transitioned to automated customer service systems or live chat options. This may not suit restaurant owners who need immediate assistance in the event of technical difficulties.

7. Review the contract.

Unlike many business software services, credit card processing is much more complicated when it comes to the fine print. Often, you are required to sign a contract. It is crucial to read the contract thoroughly to verify the rates, fees and terms that were quoted to you. This ensures you have a clear understanding of the agreement before proceeding.

Contracts typically consist of three components: the merchant application, terms and conditions (or terms of service) and the program guide (or merchant operating guide). On many application forms, you will find personal guarantee clauses that allow the processor to conduct credit checks. These clauses also give the processor the authority to collect money directly from you personally if, for any reason, your business becomes unable to fulfill its obligations.

The primary advantage of credit card processing is the capability to accept various payment methods, including credit and debit cards and increasingly popular mobile wallets like Apple Pay and Google Pay. This flexibility in accepting different payment types is crucial for almost every type of restaurant, as many customers now prefer cashless transactions and rely on digital payment options.

Speeds Up Service

Restaurants of all kinds rely on speedy operations to increase throughput and generate more sales. Swiping or tapping a credit card is usually much faster than dealing with cash payments and fetching change for customers. Choosing the right combination of credit card processing software and hardware ensures seamless service and fast payment.

Helps You Collect More Tips for Workers

Although tipping in the United States has traditionally been reserved for sit-down restaurants, many credit card processing devices now include tip screens for all types of establishments. In recent years, fast-food and quick-service eateries have provided customers with the option to leave a tip. This can help boost employee pay without impacting your bottom line.

Enhances Restaurant Security

In recent years, many restaurants have stopped accepting cash payments and switched entirely to credit cards and mobile payments, largely for security reasons. Going cashless makes your restaurant less of a target for robbers, which keeps your employees and customers safe. It also prevents employee theft, which can sometimes come with a cash-based business.

Creates Incentives for Diners

Many credit cards offer additional rewards for dining-related purchases. Accepting all credit card brands is one way for you to bring in more customers and generate more sales at your restaurant.

Allows You to Charge No-Shows

To encourage diners to make more responsible reservations, many restaurant owners now require them to hand over credit card information during their booking. This lets you charge a no-show fee for customers who decide to skip their reservation with no prior notice.

Streamlines Your Finances

Because credit card payments are electronic, you don’t need to worry about bundling and depositing large amounts of cash into your business bank account. Instead, you can sync your credit card processor with your accounting software to ensure that all transactions are automatically recorded.

Enables You to Accept Payments Offline

Most credit card processors, including the ones we reviewed, offer support for offline card processing. In an environment such as a restaurant, you may lose power or internet connectivity when diners are in the middle of a meal. Credit card processing software allows you to continue accepting payments in the event of an outage. Once power is restored, the payments process normally.

Ensures You Don’t Miss Sales

Credit card processors make it easy to accept payments across multiple sales channels, which is often crucial for a restaurant’s sales. You can accept payments at your restaurant’s physical location with a countertop payment terminal, card reader or POS system. Using a virtual terminal, you can input credit card details for customers that call in orders from home. You can also accept payments over the internet using several methods, including through a website or third-party delivery app.