6 Best Restaurant Payment Processors for 2023
This article is part of a larger series on Payments.
While many restaurant point-of-sale (POS) systems offer payment processing, the built-in solution may not be the best for you. Whether you need an independent merchant account that gives better rates or full-service payment processing that integrates with your POS system, many payment processors cater to restaurant needs. The best merchant accounts for restaurants are compatible with multiple popular POS systems, offer chargeback protection, and have competitive rates for restaurants of all sizes.
We researched payment processors across the board and found the following are the best:
- CDGcommerce: Best overall restaurant credit card processor
- Square: Best for small restaurants and food trucks that want built-in processing
- Stripe: Best for delivery, meal subscription services, and ghost kitchens
- Stax by Fattmerchant: Best for midsize restaurants that process less than $500,000 annually
- Payment Depot: Best (and cheapest) for restaurants that do high-volume sales
- Payline Data: Best for restaurants that invoice, like catering services and banquet halls
Looking for a great restaurant POS system with built-in payment processing?
Many restaurant POS systems offer their own payment processing. Square on our list is one of them. Others that we recommend are Lightspeed, Toast, and TouchBistro. Also, check out our list of the best restaurant POS systems.
Restaurant Payment Processors Compared
Monthly Subscription Fee | In-person Transaction Fee | Online Transaction Fee | Chargeback Fee | Setup/ Reprogramming | Native POS | Online ordering | |
---|---|---|---|---|---|---|---|
$0–$199* | Interchange + 5 cents—2.75% + 30 cents* | Interchange + 5 cents—2.9% + 30 cents* | $25** | ✓ | Costs extra | ✓ | |
$0 | 2.6% + 10 cents | 2.9% + 30 cents | $0 | Available | ✓ | ✓ | |
$0 | 2.7% + 5 cents | 2.9% + 30 cents | $15 | Available | Can program your own | ✓ | |
$99 to $199 | Interchange + 8 cents | Interchange + 15 cents | $25 | ✓ | ✕ | Build your own | |
$59–$99 | Interchange + 5 cents | Interchange + 5 cents | Undisclosed | Available | ✕ | ✓ | |
$10 (in-person) & $20 (online) | Interchange + 0.4% + 10 cents | Interchange + 0.75% + 20 cents | $25 | Available | ✕ | Costs extra | |
*Varies by subscription type, see detailed pricing table
**Refunded if you win the dispute
CDGcommerce: Best Overall Restaurant Payment Processors
CDGcommerce
What We Like
- Robust chargeback monitoring
- Multiple subscription types support a variety of restaurants
- Month-to-month memberships with no cancellation fees
- 24/7 year-round US-based customer service
What's Missing
- Locking in best rates requires paying monthly fees annually
- Amex cards incur additional fees
- Does not support businesses selling CBD products
CDGcommerce Pricing
- Monthly fee and transaction fees: Vary by account type, see details in the pricing section below
- Chargeback fee: $25; refunded if you win the chargeback dispute
- Favored Restaurant POS Systems and Food Service Apps: FuturePOS HarborTouch, POSitouch, RestaurantManager, MICROS, Aloha
- Works with POS systems that integrate with TSYS: TouchBistro, Lightspeed, Lavu, Revel, Appetize, more.
CDGcommerce is a merchant services provider that offers three different subscription types to support restaurants of all sizes. Mom-and-pop restaurants with low sales volumes can get simple flat-rate pricing, while high-volume restaurants can get competitive interchange-plus transaction fees.
Like Stax and Payment Depot, CDGcommerce uses TSYS as its back-end processor. This network is compatible with hundreds of POS systems, including popular restaurant systems like TouchBistro, Revel, Lightspeed, Lavu, and Aloha. However, it says its preferred system is HarborTouch, followed by FuturePOS, POSitouch, and Restaurant Manager.
Back-end processor:
One of several companies that connect credit card brands to banks. The major back-end processors in the US are TSYS, Worldpay, Chase Paymentech, Elavon, and Fiserv. Most payment processors and merchant service providers use at least one of the major back-end processors to facilitate credit card transactions.
Based on our payment processing scoring criteria, CDGcommerce earned 4.15 out of 5. It received high marks for its payment flexibility, month-to-month memberships, and comprehensive chargeback support. The system only lost points in pricing because it charges an extra fee for Amex transactions (which many payment processors do). Additionally, it did not offer same-day deposits like Stax and Payline. Square and Stripe also offer same-day transfers for an extra fee.
CDGcommerce Pricing
Flat Rate
Best for: Small cafes, food trucks, and concessions that process less than $10,000 per month
In-person swiped, dipped, or tapped | Mobile | Online | |
---|---|---|---|
Transaction fees | 2.75% + 30 cents | 2.75% + 30 cents | 2.0% + 30 cents |
Additional charge for manual entry | None | 0.15% | None |
Amex Surcharge | 0.25% | 0.25% | 0.25% |
Interchange Plus
Best for: Small to medium full-service restaurants and coffee shops that process between $10,000 and $200,000 per month
Retail | Online | Nonprofit | |
---|---|---|---|
Transaction rate* | Interchange + 0.25% + 10 cents | Interchange + 0.30% + 15 cents | Interchange + 0.20% + 10 cents |
*Since interchange rates are set by the card brands, your overall fees for different card types (like Amex) will vary.
Wholesale
Best for: High-volume restaurants, restaurants with high check averages, or multi-unit restaurant groups
Basic | Standard | Plus | Premium | |
---|---|---|---|---|
Monthly fee (billed annually) | $49 | $79 | $99 | $199 |
Flat transaction fee | Interchange + 10 cents | Interchange + 10 cents | Interchange + 7 cents | Interchange + 5 cents |
Monthly processing limit | $25,000 | $75,000 | $200,000 | Unlimited |
CDGcommerce Card Readers
Walker 2.0 | DejaVoo Z11 |
---|---|
$65 | $79/year |
Bluetooth, EMV compatible tap and chip reader for mobile | Wi-Fi connectivity, touch screen, EMV + NFC payments, built-in printer |
CDGcommerce Features
CDGcommerce’s price and POS integrations make it a great fit for restaurants of all sizes. But one aspect that sets it head and shoulders above its competitors is its chargeback monitoring tools. If chargebacks are a major concern for your restaurant, you’ll love CDGcommerce’s active chargeback monitoring and robust chargeback assistance. You’ll also be rewarded for your legwork; CDGcommerce refunds chargeback fees if you win the dispute.
In the News:
Chargebacks and “friendly fraud” have increased as restaurants expand their ecommerce operations.
CDGcommerce’s standout features include:
- Chargeback monitoring: In case of a chargeback, CDGcommerce emails you immediately. Its customer service team will help you compose your response to the card brand to ensure you present the strongest case possible. Stripe also has chargeback monitoring, but charges extra for its advanced tools.
- Collections support: It may not be worthwhile to send a charged-back dinner for two to collections, but if your restaurant does private events or catering, a chargeback dispute can cost you hundreds to thousands of dollars. CDGcommerce’s collections arm will attempt to get back some of the funds, despite losing a chargeback dispute. You will receive 50% of what it collects and pay nothing, even if it can’t collect your debt. CDGcommerce is the only provider on this list with such a feature. However, Square simply covers chargeback disputes up to $250 per month.
- Flexible payment options: In addition to having the most versatile plans for payment processing, fee-wise, it offers a great range of restaurant-specific tools. It integrates with popular gateways Authorize.net, PayPal Payflow Pro, and Braintree. It also has its own mobile app for accepting payments directly (although this is not a POS system but a simple payment app). You can also create a case. Stripe offers similar versatility for payment gateways.
- Quick approvals: You can apply for a CDGcommerce account through its sales team, and approvals only take one to three business days. This is pretty fast for the industry, but if you need to start taking payments immediately, check out Square or Stripe.
- No cancellation fees: Like with most of the payment processors on our list, you can stop using CDGcommerce at any time without incurring a cancellation fee. If your business grows or slows or your needs change, you are not tied to a long-term contract.
Find more things to like about the provider by reading our CDGcommerce review.
Square: Best for Small Restaurants Wanting Built-in Processing
Square
What We Like
- Free built-in POS and online ordering site create an all-in-one solution
- Flat-rate pricing is the same for every card type
- No chargeback fees
- Immediate account approvals
What's Missing
- Flat-rate fees are higher than you would pay with an interchange plus or wholesale pricing
- Funds can take 2–3 days to hit your bank account
- Chargeback support is limited
Square Pricing
- Monthly fee: $0
- In-person transaction fee: 2.6% + 10 cents
- Online transaction fee: 2.9% + 30 cents
- Card-not-present/manually keyed fee: 3.5% + 15 cents
- Custom fees for over $250,000 in annual processing
- Amex Surcharge: $0
- Chargeback fee: $0
- Same-day Funding: 1.5%
- Favored Restaurant POS Systems: Square for Restaurants
- Also works with: TouchBistro, SalesVu POS, Koomi
Square is an incredibly easy-to-use payment processor that operates on POS terminals and mobile devices. All you need to get started taking Square payments is a card reader and a Square account that connects to your bank account. Small restaurants don’t need to complete invasive questionnaires or wait days for account approval; you can start accepting Square payments in a single day.
Its flat-rate transaction fees remain the same no matter what type of card your customers use. That’s right—you won’t pay higher fees to process Amex cards or rewards cards. Square users also don’t pay chargeback fees on disputed transactions.
Square earned an overall score of 4.13 out of 5 in our evaluation, with high marks for ease of use and affordability. It also offers excellent online and in-person payment processing tools. These features also make it our top recommendation in our list of the best merchant services for small businesses.
The system lost some points because it supports fewer POS systems than the others. Only users of Square POS and TouchBistro, plus the lesser-known SalesVu and Koomi POS, can integrate Square into their POS. If you use a different POS, you’ll find a better fit with one of the other processors on our list, as they support more POS integrations.
Square Pricing
Square is a flat-rate processor, meaning that no matter what the card or interchange rate, you pay the same. It’s a great choice for low-volume sales, especially since there are no monthly fees, and you get basic POS, invoicing, online payments, and a virtual terminal for free.
The processing rates are:
- In-person card payment: 2.6% + 10 cents
- Online card payment: 2.9% + 30 cents
- ACH: 1% with a minimum fee of $1
- Buy Now Pay Later: 6% + 30 cents (per card payment with Afterpay)
- Same-day Funding: +1.5%
If your restaurant processes more than $250,000 annually, you can contact Square directly for a custom quote to lower those fees.
Square offers many advanced services:
- Square for Restaurants Plus: $60 per month
- Invoicing Plus: $20 per month
- Online Plus: $29 per month
- Online Premium: $79 per month (has a lower processing rate as well)
- Square Appointments Plus: $29 per month
- Square Appointments Premium: $79 per month
- Square Loyalty: $45–$105 per month (depending on loyalty visits)
- Square Email Marketing: $15–$40 per month (depending on contacts)
- Square Text Marketing: $10 per month + $10–$125 per month (depending on the number of texts)
- Square Payroll: $35 + $5 per employee per month or $5 per employee per month for contractors only
Square Card Readers
Contactless & Chip Reader | Square Terminal | Square Stand for iPad |
---|---|---|
$49 | $299 | $169 |
Mobile or on-site tap and chip reader | Tableside card readers | Built-in POS swipe reader |
Square Features
Square manages credit, debit, and mobile wallet payments directly from bank to merchant without using a back-end processor like TSYS. However, this means it’s not as compatible with other POS systems. It offers its own excellent POS system, Square for Restaurants, as well as a suite of online tools and a mobile app with a full POS. You can use its own hardware or an iPad or smartphone (Android or iOS).
- POS compatibility: You can use Square Payments on the Square for Restaurants POS, which offers a free baseline system that operates on iPads or Square hardware. For a monthly fee of $60, you can add table management and multiple user permissions. Square Payments is also compatible with TouchBistro and SalesVu if you prefer a different POS layout. It integrates with Koomi POS for quick-service restaurants.
- Free online ordering site: Square users get access to a free online ordering site that integrates with the Square for Restaurants POS. You can accept online orders for pickup or delivery and accept online payments for online orders. Others offer online ordering, but it may not integrate as easily as Square does to its POS.
- Free invoicing tools: While Payline Data’s cheaper processing fees and free Automated Clearing House (ACH) processing suit catering and banquet businesses, if your restaurant does private events or off-site catering, Square lets you send professional-looking invoices for deposits and payments directly from the dashboard. For a monthly fee of $20, you can unlock more features, like the ability to convert estimates into invoices or add custom invoice fields.
- Business services: Unlike the other payment processors on our list, Square offers a complete offering of business services, including bank accounts, loans, payroll, and even benefits. If you want to have a full fintech system that works together with ease and can grow with you, Square is a top choice.
See more of what Square has to offer by reading our Square Payments review.
Stripe: Best for Online Orders, Delivery & Ghost Kitchens
Stripe
What We Like
- Free merchant account
- Extremely good for integrations
- 24/7 support
- Multicurrency payment processing
What's Missing
- Complex installation process
- No native POS
- May need an API to integrate into your POS system
Stripe Pricing
- Monthly fee: $0
- Online transaction fee: 2.9% + 30 cents
- In-person transaction fee: 2.7% + 5 cents
- Touchless: 2.9% + 30 cents
- Virtual terminal: 2.9% + 30 cents
- ACH: 0.8%, $5 cap
- Invoicing: 0.4%–0.5%
- Recurring Billing: 0.5%–0.8%
- Chargeback fee: $15
- Same-day funding: 1%
- Favored Restaurant POS Systems and Food Service Apps: Lightspeed
Stripe is a leading payment processing service that often makes our list as the best for online payment processing. That’s because it’s eminently integratable and offers excellent support for its API tools. Its flat rates are competitive as well. However, it lacks a native POS system and does not integrate with as many other restaurant POS systems as others on this list, except through API. Thus, we think it’s the best choice for services that primarily collect online payments: food meal services, smaller catering businesses, and ghost kitchens that take direct online orders (ghost kitchens that only use third-party platforms don’t need a processor).
While users say it’s easy, you may still need some programming. If you have webmaster or programming experience, then Stripe’s powerful tools will thrill you. You can even create your own custom POS system if you wish. Stripe does have some mobile payment systems with a few POS tools.
Overall, Stripe earned 4.02 out of 5 on our rubric. Its pricing is transparent and competitive with Square, and it has a great range of online tools, including top-rate fraud monitoring and chargeback support. It offers customer 24/7 support as well—something Square lacks. It lost points for its deposit speed and difficulty to set up, as well as because it does not offer a POS system.
Stripe Pricing
Stripe, like Square, offers flat-rate payment processing, although, for high-volume users, it can help you design a custom package. Usually, this is for businesses processing over $500,000 in annual sales. Square started offering discounted rates at $250,000 annually.
Stripe’s rates are more complex than most on our list because it sometimes charges additional transaction fees for services instead of monthly fees. This can be an advantage if you make low-volume sales.
- In-person swipe, dip, touch: 2.7% + 5 cents
- Online: 2.9% + 30 cents
- Keyed-in fee (starting November 10, 2022): 3.4% + 30 cents
- ACH and wire transfers: 0.8%, $5 cap
- Instant payouts: 1%
Anti-fraud and chargeback protection:
- Additional point-to-point encryption for certain industries: 5 cents per authorization
- Adaptive acceptance (machine learning improves authorization rates): 0.08% per successful charge
- Radar machine learning fraud protection: 5 cents per screened transaction (waived for accounts with 2.9% + 30 cents fees)
- Radar for Fraud Teams: 7 cents per screened transaction (2 cents for accounts with 2.9% + 30 cents fees)
Additional tools:
- Custom domain for checkout page, billing: $10 per month
- Billing/recurring payments: 0.5%
- Invoicing: 0.4%
- Automatic tax calculations: 0.5% (not needed if your POS does this)
- Revenue reporting: 0.25% of volume
- Sigma reporting and analysis: starting at 2 cents per charge
Stripe Card Reader
Stripe Reader M2 | BBPOS WisePad 3 | BBPOS WisePOS E |
---|---|---|
$59 | Call for Quote | $249 |
Stripe's newest Bluetooth-enabled card reader that accepts EMV chip, contactless, and swipe payments. | EMV chip & contactless payments, built-in PIN pad, Bluetooth connectivity | EMV chip and contactless payments, Wi-Fi connectivity, 5” touch-screen display |
Stripe Features
- Online ordering: It’s easy to accept online orders with Stripe’s customizable checkout page, which can take one-time orders or subscriptions. Combined with Stripe Billing, you can set up payments for your meal service. If you already have an ordering site, Stripe Elements lets you customize the payment section. Accept any of 18 different payment methods, for a versatility few on our list offer.
- Easy integrations: Stripe integrates with over 1,000 programs, making it the most versatile of all the payment processors on our list. Unfortunately, it doesn’t integrate with many POS systems. It integrates with Lightspeed and can handle online payments for Clover via an API integration and processes e-giftcards for Toast. Nonetheless, it offers powerful APIs with excellent documentation and 24/7 support to help you connect Stripe to your software.
- Social and website selling: With Stripe Payment Links, you can add a payment page that works anywhere online. This is great for social selling, like if you want to offer catering gigs or snack boxes from your Facebook page. Payment Links requires no coding. You’re notified by email or on the dashboard when a sale is made. Square and Stax have payment link capability, but the others require a third-party service.
- Fraud Prevention: Like CDGcommerce, Stripe protects you from chargebacks; however, it does so by fighting fraud in the first place. Stripe Radar uses machine learning and the data from billions of Stripe transactions and data from other partners to detect false accounts quickly. The main program is built into Stripe and includes free with a regular account. Stripe also has ID verification tools for detecting fake accounts.
- International payments: This may not affect you, but if you do cross-border sales or have an eatery in a tourist town or airport where you may get different currencies, Stripe has you covered. For an additional fee, it can process payments from any of over 130 countries.
Read our Stripe review for more information.
Stax by Fattmerchant: Best for Midsize Restaurants Processing Less Than $500,000 Annually
Stax
What We Like
- Same-day funding options
- Excellent customer service
- Stored payments and recurring billing are a good fit for meal kit programs
- Free terminal or mobile card reader
What's Missing
- Account approvals can be lengthy
- Not a good fit for small operations that process less than $10,000 per month
- API integration requires a Pro or Ultimate Plan
Stax by Fattmerchant Pricing
- Monthly fee: $99 to $199
- In-person transaction fee: Interchange + 8 cents
- Online transaction fee: Interchange + 15 cents
- Custom fees for over $500,000 in annual processing
- Chargeback fee: $25
- Same-day Funding: Call for fee
- Integrates with hundreds of POS systems: Aloha, TouchBistro, Lightspeed, Lavu, Revel, Appetize, MICROS, more.
Stax by Fattmerchant offers midsize independent restaurants interchange-plus pricing at a highly affordable rate, with a monthly fee that includes other benefits. For businesses that process up to $500,000 annually, Stax processes card and mobile wallet payments with a markup of 8 to 15 cents on top of interchange.
Stax takes 24–48 hours to approve applications on average. You need to show previous processing statements, making it harder for new restaurants to apply. For fast and easy approvals, small independent restaurants are better off with Square or Stripe.
Stax earned 3.91 out of 5 in our evaluation. The cost-effective subscription model earned a lot of points, as did the same-day funding options (even though, like with Square, they cost extra). Stax could have scored higher if it offered more robust chargeback support (like CDGcommerce) and didn’t charge extra for online ordering tools.
Stax by Fattmerchant Pricing
Stax by Fattmerchant offers a straightforward fee structure. Like Square, Stripe, and CDGcommerce, there are no cancellation, statement, or batch fees. Like Payment Depot users, Stax customers pay a monthly subscription fee based on their sales volume, plus interchange rates on their transactions. Stax does not add a percentage markup, so there is no complicated math to figure out what you’ll pay for each transaction.
Stax offers three small business plans. Monthly rates vary depending on what tools you need to support your business. However, the transaction fees are the same for all tools and for all credit cards. It does not have an extra fee for American Express like CDGcommerce.
- In-person transaction fee: Interchange + 8 cents*
- Card-not-present transaction fee: Interchange + 15 cents*
*Transaction rates based on received quotes; rates may vary at Stax’s sole discretion.
Since our last update, Stax has expanded the offerings in its plans.
Growth | Pro | Ultimate | |
---|---|---|---|
Monthly price | $99 | $159 | $199 |
Included features |
| Growth Plan Plus…
| Pro Plan Plus…
|
Unlike Square and Stripe, Stax charges extra for its shopping cart and custom branding for invoices. It also has add-ons for QuickBooks Online Pro sync, a terminal protection, same-day funding, and digital gift cards.
If you qualify for Level 2 payment processing (generally for business-to-business (B2B) payments), Stax can arrange lower interchange rates. However, this is also a paid add-on. By contrast, Payline lets you automatically receive Level 2 and Level 3 data rates for qualifying transactions.
Stax Card Readers
Since our last update, Stax has changed some of its offerings for mobile and countertop card reader systems.
Stax Pay Chipper 2X | Clover handheld and countertop | Dejavoo Z and QD Series |
---|---|---|
EMV-compliant Bluetooth-enabled swipe, dip, and tap reader for mobile or on-site payments | The full line of Clover products from handheld readers to full registers | Countertop, POS or Wi-Fi connected card reader |
Stax by Fattmerchant Features
Stax’s easy pricing structure and free card reader or terminal is complemented by its ability to integrate with a wider range of restaurant POS systems (through TSYS). We especially like the Text2Pay tool for home deliveries, but if you supply larger clients, you can send invoices and even recurring payments.
- Same-day funding option: Most Stax by Fattmerchant customers receive a one- to two-day turnaround on their bank deposits. But if you are willing to accept deposits on a debit card rather than in your bank account, you can get same-day funding. This can greatly help restaurants that struggle with cash flow to pay vendors and employee tips. Like Square, however, there is an additional charge. Contact Stax for pricing.
- Chargeback support: Like CDGcommerce, Stax by Fattmerchant will notify you when a customer initiates a chargeback dispute. You can organize your supporting documents and send your response to your Stax dashboard. Though these tools are less robust than what CDGcommerce offers, if chargebacks are rare in your business, they may be all you need.
- Text2Pay mobile payments: You can send payment requests to customers directly from a smartphone and receive payment via SMS text. This feature is handy for delivery-heavy restaurants.
- Phone payments: While Stax charges for a virtual terminal and its online solution, it does not charge more for keyed-in payments. Square, by contrast, charges almost a full percentage more than its swipe payments. If your POS or ecommerce tool already has a virtual terminal, this makes it cost-effective for phone orders.
- Surcharge capabilities: With Stax, you can pass your payment processing fees to the customer as a surcharge (where legally permitted). Stax can automate this for you for free. Keep in mind, though, that some states prohibit this practice, so check your local laws before using this feature.
Explore more features by reading our Stax by Fattmerchant review.
Payment Depot: Best for High-volume Sales
Payment Depot
What We Like
- Extensive POS integrations
- No contract required
- Affordable monthly fees
- No markup on transaction fees; all you pay are interchange rates
What's Missing
- Not a good fit for low-volume restaurants
- Small restaurants will save money with a flat-rate processor
- Hardware pricing requires a custom quote
Payment Depot Pricing
- Monthly fee: $59 to $99
- Transaction fee: Interchange + 5 cents, regardless of plan
- Custom pricing: Restaurants processing over $500,000 annually
- Chargeback fee: Undisclosed
- Compatible Restaurant POS Systems: Clover
- Works with POS systems that integrate with TSYS: Aloha, TouchBistro, Lightspeed, Lavu, Revel, Appetize, MICROS, more.
Payment Depot offers wholesale transaction fees to subscribers paying a monthly subscription fee, similar to Stax by Fattmerchant. However, its monthly pricing is lower, as are the transaction rates, and it includes a free online payment gateway at no additional cost. Not only does it offer the best rates for high-volume sales both online and in-person, but its restaurant rates are lower than its retail rates. It claims on its website that its restaurant customers save an average of 40% when they switch from traditional processors.
In our evaluation, Payment Depot earned an overall score of 3.79 out of 5. It was the only service to get a perfect 5 out of 5 for value and user approval—even beating Square. Its pricing ranked high as well. However, it stumbled when it came to reporting features and chargeback support. Both features are serviceable—but not as robust as others on this list. If strong chargeback support is a must for you, try CDGcommerce or Stax by Fattmerchant. It also does not offer a native POS function (see Square for that).
Payment Depot Pricing
Payment Depot’s plans typically depend on the volume of sales you process in a year, but for restaurants, it offers a flat interchange + 5 cents no matter what plan you use. Thus, your monthly fees only depend on your transaction volume. If you process over $500,000 annually, however, contact Payment Depot, as you may qualify for even better pricing.
Starter | Starter Plus | Growth | |
---|---|---|---|
Monthly subscription fee | $59 | $79 | $99 |
Annual processing limit | $125,000 | $250,000 | $500,000 |
Payment Depot Card Readers
SwipeSimple B250 | SwipeSimple Terminal | Poynt Smart Terminal |
---|---|---|
Mobile or Countertop Tap, Dip, and Swipe Reader | Cloud-based tap, dip, swipe, or PIN-enabled card reader | Mobile POS Terminal with built in card reader |
Payment Depot Features
Payment Depot regularly appears on our list of the cheapest credit card processors. In addition to competitive interchange-only rates, Payment Depot has historically offered a 90-day money-back guarantee to new customers. Like CDGcommerce, Payment Depot uses both the TSYS and Fiserv for back-end processing and supports a wide range of popular POS systems, particularly Clover.
- All-in-one pricing: Your Payment Depot account includes in-person and online payment tools for a single monthly fee. With a minimal additional markup on interchange fees, Payment Depot is the lowest-cost processor for high-volume restaurants, especially those that need to reduce the costs of processing online payments. It also reprograms your equipment for free; others like Stripe, will assist but not do this for you.
- Choice of payment gateway: Rather than providing its own gateway, like the others on our list, Payment Depot offers you a choice of popular gateways for free: Authorize.net or SwipeSimple, usually. These come with added benefits like a virtual terminal.
- 24/7 customer support: Like CDGcommerce, Payment Depot offers customer support via phone and email 24 hours a day. Customer reviews frequently mention Payment Depot’s speedy response time and supportive staff. This is great news for restaurant managers who need to resolve payment problems when sending the Saturday night credit card batch.
- Level 2 and Level 3 credit card processing: Like Payline, Payment Depot offers Level 2 and 3 processing, although it may require a higher membership plan. This is a good option for those who cater to corporate events.
- Money-back guarantee: Most payment processors on our list allow month-to-month payments. Payment Depot does as well, yet it goes a step beyond by offering new customers a 90-day money-back guarantee. If, after 90 days, you are not pleased with your Payment Depot account, you can cancel and receive a full refund of the monthly subscription fees you paid.
Take a closer look at this processor by reading our Payment Depot review.
Payline Data: Best for Restaurants That Invoice, Like Catering Services
Payline Data
What We Like
- Waives the monthly fee for your first month
- No contract required
- Competitive interchange-plus fees
- Free virtual terminal and ACH deposit tools
What's Missing
- Limited business management tools
- High-volume restaurants that process on-site payment can find lower rates elsewhere
- Customer support is not 24/7
Payline Data Pricing
- Monthly fee:
- In-person transactions: $10
- Online transactions: $20
- First two months free
- In-person transaction fee: Interchange + 0.4% + 10 cents
- Online transaction fee: Interchange + 0.75% + 20 cents
- Chargeback fee: $25
- Cancellation fee: None
- Favored Restaurant POS Systems and Food Service Apps: Clover, NCR, and MICROS
- May not integrate with TSYS
Payline Data offers small businesses interchange-plus transaction fees with affordable monthly subscription fees. All accounts include a free virtual terminal with no gateway fees for online transactions and ACH payment processing at no additional cost. If your restaurant performs a lot of off-site catering and private events, these tools will allow you to process large phone payments and accept direct bank deposits with much lower rates than you’d pay with traditional credit card payments.
The system earned a 3.64 out of 5 in our evaluation. It scored points for its free ACH payment processing tools and included a virtual terminal. Its fees are also competitive, though it suffered from not offering 24/7 live customer support. And while its rates are low, most high-volume restaurants will pay less with a wholesale processor like Stax by Fattmerchant or Payment Depot.
Payline Data Pricing
Since our last update, Payline has updated its pricing plans.
Payline Data offers simple, transparent pricing with interchange-plus rates for online and in-person sales. These come with custom reporting and a virtual terminal. Like Payment Depot and Stax by Fattmerchant, Payline Data customers pay a monthly subscription fee, but Payline Data’s fees are much lower.
In person | Online | |
---|---|---|
Monthly subscription fee | $10 | $20 |
Transaction fee | Interchange + 0.4% + 10 cents | Interchange + 0.75% + 20 cents |
Rather than a money-back guarantee like Payment Depot, Payline simply offers you your first two months free. It’s a great, no-pressure way to try out their service.
Payline Data Card Readers
Ingenico iSC Touch250 | Ingenico iSMP4 | Ingenico iPP 320/350 |
---|---|---|
Electronic signature-enabled tap, swipe, dip and PIN-compatible card reader | EMV-Compliant, Wi-Fi-enabled tap, swipe and chip card reader | Ethernet-connected Point-to-Point Encrypted chips and swipe enabled card reader |
Payline Data Features
In addition to competitive interchange-plus fees, Payline integrates with several ecommerce platforms—Shopify, WooCommerce, BigCommerce, Magento and more. If you want a sharp-looking online ordering site that combines catering services, takeout and delivery orders, and merchandise, these integrations provide you with a lot more flexibility than your basic online ordering system.
Payline’s standout features include:
- ACH payment processing: Payline Data includes ACH payment processing for free in its baseline subscription. This is great for catering companies that tend to bill customers in several lump sums. By accepting payments directly from a client’s bank account, you pay lower fees and avoid the potential for chargeback or fraud claims. (There are still some fees involved, but Payline Data says they come to less than 10 cents per transaction.)
- Website and ecommerce integrations: Payline Data integrates with a wide range of shopping cart programs, including WooCommerce—a popular free version for websites. It also offers a no-cost API. (Stripe is better known for its integration capability but, of course, has higher transaction fees.)
- Virtual terminal: Payline offers a user-friendly virtual terminal as part of its plans. It processes credit and debit as well as ACH bank transfers. It can store and tokenize customer payment information, making it easy to ring up repeat customers. This terminal is a great convenience when you take orders over the phone.
- Invoicing: If you are billing your customer, you can send invoices through the virtual terminal. It can even create recurring billing for regular customers or set up scheduled payments. This is great if you break up a catering bill into installments. Here, too, tokenization allows for better security when your customer makes a payment.
- Level 2 and 3 payment processing: Payline Data offers both Level 2 and 3 automatically. Meanwhile, Stax offers Level 2 payment processing as a paid add-on for qualifying businesses, and Payment Depot may require a higher plan. This makes Payline Data a better choice for restaurants or catering services that handle corporate events.
Take a closer look at this processor by reading our full Payline Data review.
How We Evaluated
We compared several popular payment processors based on what’s important to independent restaurants, including cost, chargeback protection, and compatible POS systems. We also considered our retail and restaurant experts’ personal evaluations of each software, alongside customer reviews from popular review sites.
Based on the above criteria, CDGcommerce emerged as the best restaurant payment processor with an overall score of 4.15 out of 5. Based on our experience working in and with independent restaurant businesses that rely on payment processors, CDGcommerce is also one of the top tools that we personally recommend.
Click through the tabs below for a full breakdown of our scoring criteria:
35% of Overall Score
When it comes to payment processing, cost is hands-down the most important factor for restaurants. We looked for processors that offer locked-in rates, transparent pricing, volume discounts, and no or low chargeback fees. We also looked for month-to-month contracts and contracts with no cancellation fees, since a restaurant’s needs can change over time. CDG Commerce takes the lead with 4.5 out of 5.
20% of Overall Score
Most restaurants run their transactions through a POS system, so we looked for processors compatible with multiple systems. We also looked for online payment tools, tableside card readers, and the ability to process in-person payments in the field. Square ranked first with 4.25 out of 5. It has an excellent native POS, but only integrates with a few others.
25% of Overall Score
In addition to general features like one-day deposits and chargeback monitoring, we also considered features important to restaurants, like after-hours customer support and customer data analysis. We were very discerning in this section. Stripe, with only 3.5, was the top contender.
20% of Overall Score
This score combines our judgment of price, ease of use, and feature set with the reviews of real-world users. Most of those on our list scored 4.69 out of 5, but Payment Depot took the lead with a perfect 5 out of 5.
Restaurant Payment Processors Frequently Asked Questions (FAQs)
What is a restaurant payment processor?
In truth, any payment processor (or merchant account and gateway) can work for a restaurant, since it generally facilitates payment via credit, debit, and so on. However, the best restaurant payment processors integrate easily with your restaurant POS and offer tools for online and phone-in ordering.
What should I look for in a restaurant payment processor?
You not only want a payment processor that works with your POS and handles the specific kinds of payments often seen in food services, but also meets the other needs of a busy restaurant. For example, having a 24/7 customer support line means you can contact them in emergencies or after you close at night and still get help.
Do I have to have a restaurant-specific payment processor?
Not necessarily. Many general-use payment processors work just fine with restaurant systems. If you already have a payment processor or merchant account you are comfortable with, then you should check that it will integrate with your restaurant POS.
What other restaurant-specific POS payment processors are there?
Several restaurant POS systems offer their own payment processing that works on their systems. We recommend Toast, Lightspeed, and TouchBistro for restaurant payment processors with their own POS system. Square, of course, has its own system, Square for Restaurants, but can also be used with other restaurant point-of-sale systems, including TouchBistro.
When is it better to shop around for a processor or use processing built into a restaurant POS?
Established restaurants or existing restaurants expanding into new locations will benefit from shopping for the best rates. If your restaurant is high-volume or has a high check average (over $40 per person), you’ll also benefit from shopping around for the best rates.
I’m a new restaurant. What payment processor should I use?
New restaurants with no established sales history to show their sales volume and check average are usually better off using payment processors built into their restaurant POS. You won’t need to worry about not being approved for a merchant account. You can always shop for lower rates after your restaurant has been operating for a year.
If you start your restaurant using a free POS or one with no long-term contracts, there is little risk in switching processors and POS brands as your business grows.
What is a good processing rate for restaurants?
A good processing rate for your restaurant is one that allows you to accept credit, debit, and mobile wallet payments while still turning a profit. Every restaurant is different, so a good processing rate for a mom-and-pop breakfast spot with low check averages will likely be higher than a good processing rate for a high-volume restaurant that serves three meals a day.
It’s important to remember that the rates you are quoted as a new business will not be the rates you pay forever. As your sales grow, you will have a documented history of your sales volume and check average, so you can negotiate lower rates with your processor or shop for a new one.
How can I get the lowest processing rates for my restaurant?
The best way to get low processing rates for your restaurant is to process as many transactions as possible in person. Avoid manually entering credit card payments. If a customer’s card is declined, avoid multiple swipes; instead, request a different form of payment. Get a signature with every transaction, and update your card readers to EMV-compliant and point-to-point encryption (P2PE) enabled readers.
After you have been open for a year, use your sales history to get rate quotes from several processors. Even if your POS contract prevents you from switching to a new processor right away, you may be able to use the documented quotes from other processors to negotiate lower rates with your current processor.
Learn more about how credit card processing fees work.
Bottom Line
Many restaurant POS systems offer their own payment processing, but these are not always the best solutions. You may want better rates or need a payment processor that also works with online orders. We found the top restaurant payment processing services for price and versatility.
CDGcommerce earned the top rating for restaurant payment processing for its flexible payment plans and wealth of compatible POS systems. It also provides the strongest chargeback protection tools of any system on this list—an absolute must for any restaurant that accepts online or mobile payments. To find the best plan for your restaurant, contact CDGcommerce to get started.