The Cost of Doing Business: Hidden Payment Fee Red Flags

Both legacy restaurants and newer establishments can agree that the literal cost of doing business from payment processing can severely hamper revenue growth from the first sale. There is nothing more ubiquitous than cashless payments, but the ease of credit card use for a customer can create a significant cost for restaurants through exorbitant payment processing fees. 

As an increasing amount of consumers use credit cards to pay for dining, the swipe fees continue to mount, eating into razor-thin margins, which average about three to five percent in the restaurant industry. In April, Visa and Mastercard raised transaction fees which are estimated to cost U.S. business owners an added $1.2 billion in fees. To help recoup the cost of accepting cards, some restaurants are raising the prices of menu items, and others (where permitted by state law and merchant services agreement) are adding a credit card surcharge to bills. 

Restaurants must carefully choose their payment processing…