The Best Restaurant Credit Card Processing Rates In 2013?

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The Best Restaurant Credit Card Processing Rates In 2013?

Postby creo » Wed Oct 30, 2013 5:00 pm

Question: If you own and operate a cafe, where the average entree price is around $10-13, what are the lowest rates you can get for credit card processing and from whom?

I have seen a lot of places using Square, is that the way to go? Alternately should I go the traditional route of opening a merchant account with a processing company and taking whatever they give me.

My only concern with doing that is I have heard so many nightmares and disaster stories about merchant accounts because the pricing is rarely transparent. With Square (or similar competing service) you pay a flat fee and flat percentage no matter what type of credit card the customer pays with is that right?

This would be for a fast casual restaurant concept that I would be a franchisee of. Since gross margins may only be 15-20%, the rate I pay for plastic will make a big difference in my bottom line.

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Postby whit » Wed Oct 30, 2013 10:31 pm

you're in socal and its a franchise, so most likely majority of your customers will be local..square is definitely the way to go, pricing wise

i do also like swipe, had the pleasure of meeting one of the collison brothers. Smart and personable.

Also depends on the volume you do, square "*Swiped transactions over these amounts cost 2.75% per swipe. In the event your swiped, Square Wallet and Square Market transaction volume exceeds $21,000 per month, you will be charged Square's per-swipe fees for each subsequent transaction submitted in the same month."

If you go with square and you do volume of 10k or more a month, but not over 21k obv, then it would be worth it to do 275$ because over 10k it'll cost you more

if you do under 10k, better to get 2.75, as you won't get up to that amount in fee (275$)

Stripe accepts JCB, square doesn't, but both accepts all four.

Stripe is more for international and local, square is local businesses, small and mid size

Stripe will give discounts the bigger volume you do

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Postby Midori » Thu Oct 31, 2013 9:43 am

Out of curiosity, does the franchisor not give you any guidance/recommendations about what processor to use? When you've asked them, what do they say? Have you visited other franchisees and had any conversations on the subject?

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