The recent trend of going cashless for most transactions has been picking up since before, and a recent survey has shown that more than 70% of customers prefer to pay by card for their restaurant bill payment. More than 80% of the full-service restaurants are paid by debit, credit or prepaid cards.
This shows how the seamless transition from cash to cashless transactions has been moving forward through the last two decades. Businesses dealing with food and restaurants are looking for affordable online payment gateway for seamless transaction with ease and security.
Benefits of going completely cashless for this industry
This shows how the seamless transition from cash to cashless transactions has been moving forward through the last two decades. Businesses dealing with food and restaurants are looking for affordable online payment gateway for seamless transaction with ease and security.
Benefits of going completely cashless for this industry
Although business owners are going cashless, not everyone is completely happy with the decision. Card transactions come with benefits like, simplified accounting processes, reducing risk of pilfering and thefts, increasing profits as people who pay by card generally spend more, easy calculations of tips and many payment terminals at such establishments calculate and give a percentage-based gratuity amount for the customers.
The costly affair for entrepreneurs
Credits card processing is a costly affair for business owners. To understand this one has to understand that payment processors assume the risk of every debit and credit card transaction at the restaurant. What this means is that, in case of any type of fraud, or if the restaurant goes bankrupt, the financial fallout will be borne by the payment processor.
Fee structures and breakups
The fee structure whole not complicated can be extensive, even with an affordable payment gateway. The basic costs and surcharges are mentioned below for a clearer understanding.
Flat fees
These are the typical fees that are fixed and are used to cover the basic cost of each transaction by the payment processing companies. They are:
- Annual fee
- Monthly fee
- Online reporting fee
- Terminal fee
- Payment gateway fee
- Network access fee
- Statement fee
- Batch fee
Situational fees
These types of fees are relevant when considering a specific event or an occasion’ the various components of this type of fees are as follows:
- Cancellation fee
- Chargeback fee (non-negotiable)
- International fee (non-negotiable)
- Liquidated damages fee
- Monthly minimum fee
- NSF fee (non-negotiable)
- Set-up fee
These types of fees are not levied for day to day activities, but in case of a cancellation, or international payments, etc.
Processing fees
These types of charges are generally paid by the payment processing units; the payment processor that is used will levy these charges onto the business owners. Therefore, to get the complete picture, as an entrepreneur in the food industry, you will need to pay a combination of flat fees, situation fees, and processing fees. This is quite expensive for the businesses, as they are paying a high price for every credit card payment.
Entrepreneurs should be mindful of the charges and clarify at the time of setting up. An affordable online payment gateway will work alongside the merchants to get the best deal while also covering all the ancillary costs that are incurred by the processing unit. Technology, while simplifying lives, has also come with a huge price tag for businesses worldwide.
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