Credit card processors and merchant service providers enable restaurants to accept credit, debit, and contactless payments. Around 74% of customers pay with credit or debit cards at dine-in restaurants, and 81% of restaurant transactions are cashless. To remain profitable, restaurants need a restaurant credit card processor that offers a competitive processing rate.
When considering your restaurant credit card processing options, you’ll hear the terms merchant services and credit card processors used interchangeably. Both terms describe the same thing in a different way.
The best restaurant credit card processing and merchant services are:
- CDGcommerce: Best overall restaurant credit card processor
- Square: Best for small restaurants looking for an all-in-one payment solution for POS and online payments
- Fattmerchant: Best for cash-flow management
- Dharma Merchant Services: Best for large restaurants or catering services
- Payment Depot: Best for high-volume restaurants with a high check average
- Toast: Best in-built restaurant POS credit card processing
How We Evaluated Restaurant Credit Card Processors
We’ve examined dozens of credit card processors for a variety of functions and narrowed our list down to those that are more suited for restaurants. These merchant services have considerations like the ability to process online orders, take mobile/at-the-table payments, and deal with tips. Restaurants handle a majority of payments on-site and can process hundreds of payments in a day. So, getting the best rate for your restaurant is important.
Based on our evaluation, we chose CDGcommerce as the best overall credit card processor for restaurants. CDGcommerce offers different pricing structures to meet your sales volume and integrates with multiple restaurant POS and reservations systems. It also has features specifically designed for restaurants.
Click through the tabs below for a full breakdown of our scoring criteria:
35% of Overall Score
We favored merchant services that have guaranteed rates and don’t lock you into a long-term contract. We also looked for volume discounts, and considered chargeback fees and whether or not they charged more for American Express charges.
20% of Overall Score
Can you process contactless payments, accept payments online or via phone, or use a mobile device? Today’s restaurants need a flexible solution that can adapt to changing business needs.
25% of Overall Score
In addition to general features like same-day deposits and offline mode, we also considered features important to restaurants like weekend support and customer data analysis.
20% of Overall Score
This score combines our judgment of price, ease-of-use, and feature set with the reviews of real-world users.
How to choose a restaurant credit card processor: Restaurants handle a majority of payments on-site and can process hundreds of payments in a day. So, getting the best rate for your restaurant is important. Compare rates to find the lowest pricing for your restaurant with our cheapest credit card processing guide.
CDGcommerce
PROS
- Month-to-month memberships
- Multiple pricing tiers support different size restaurants
- Offers direct integrations with POS and reservations systems
CONS
- Lacks direct integration with many popular restaurant POS systems
- Bars and restaurants serving CBD products may be classified as high-risk
- Best rates only available if you pay 12 months worth of monthly fees upfront
| RATING CRITERIA | Pricing & Contract | 5.00 | OUT OF | 5 |
| Payment Processing Features | 5.00 | OUT OF | 5 | |
| Account Features | 3.94 | OUT OF | 5 | |
| Expert Score | 4.56 | OUT OF | 5 |
CDGcommerce offers a wide array of subscription tiers to support a variety of restaurants. Smaller businesses receive a flat-rate transaction fee, while higher-volume restaurants receive competitive interchange-plus fees.
In our evaluation, CDGcommerce earns 4.65 out of 5 stars because it beat out its competitors on pricing and account features. Plans are designed to reflect your sales volume, giving you a better rate as your monthly volume increases. CDGcommerce’s prices are listed transparently, and it has no hidden fees.
It also offers a restaurant POS system that includes marketing and promotions, plus virtual terminals and ecommerce solutions for online ordering. Finally, it has extensive chargeback protection to help protect you from fraud.
CDGcommerce Pricing
CDGcommerce offers three different pricing structures, depending on your restaurant’s sales volume. All plans include customer tracking, loyalty, and promotions, invoicing, virtual terminals, ecommerce, and a credit card terminal.
For restaurants that process $10,000 or less per month, CDGcommerce offers a flat rate:
- 2.75% plus 30 cents per transaction for swiped, dipped or tapped in-person transactions
- 2.90% plus 30 cents per transaction for manually entered, online, and card-not-present transactions
Midsize restaurants that process anywhere from $10,000 to $200,000 per month may be offered interchange-plus rates. The transaction fees for midsize restaurants are:
- Interchange plus 0.25% plus 10 cents per transaction for swiped, dipped, or tapped in-person transactions
- Interchange plus 0.30% plus 15 cents per transaction for online and card-not-present transactions
High-volume or high price-point eateries that process more than $200,000 per month will be offered CDG’s membership-based fees along with a flat, interchange plus rate, but other restaurants can take advantage of their monthly plans as well. If you sell a lot of small-ticket items, then it may be worth the monthly fee to remove the 10- or 15-cent flat fee. To lock in the lowest of these rates, restaurants must pay for their entire years’ worth of monthly subscription fees upfront.
Monthly Sales Volume | Monthly Fee | Transaction Fee |
|---|---|---|
Up to $25,000 | $49 | Interchange plus 10 cents |
$25,000–$75,000 | $79 | Interchange plus 10 cents |
$76,000–$200,000 | $99 | Interchange plus 7 cents |
$200,000+ | $149 | Interchange plus 6 cents |
Rather than leasing or selling card readers to its users, CDGcommerce includes an EMV and NFC-compliant card reader for all subscription levels at no additional cost. However, it costs $79 per year to insure the equipment, which includes upgrades. It also charges a $25 fee for chargebacks, which is industry standard.
CDGcommerce Features
In addition to its flexible subscription structure, CDGcommerce offers well-reviewed 24/7 technical support. Its processor allows for easy tip-adjustments and integrates with restaurant POS software. In addition to POS, however, CDGcommerce integrates with reservation software, which can allow you to process deposits or cancellation fees directly from your reservation system rather than transferring the information to your POS. All plans include customer tracking, loyalty, and promotions, invoicing, virtual terminals, ecommerce, and a credit card terminal.
During the onset of COVID-19, some restaurants added meal kit subscriptions as an additional revenue stream. Some payment processors classify this type of recurring payment processing as high-risk, but with enrollment in its PastePay program ($199 per year), CDG fully supports recurring payment structures like this. PastePay also includes tools for appointment scheduling, online store, and electronic gift cards.
What CDGcommerce Is Missing
CDGcommerce only integrates with a few restaurant POS systems, mostly lower-cost locally installed systems like Harbortouch, Restaurant Manager POS, POSitouch, and Future POS. If you are using a more streamlined hybrid or cloud POS, CDGcommerce may not integrate. Ask about your specific system, as it can work with TSYS platforms. To lock in the best rates, you should be prepared to pay all monthly subscription fees on an annual basis.
Square
PROS
- Integrates with Square for Restaurants and Square Online
- Operates on payment terminals or smart devices
- Flat-rate fees are clearly listed
- High-volume discount available
CONS
- Funds can take 2–3 days to hit your account
- Unexpectedly large transactions are subject to holds
- Flat rates are a bit higher than industry-specific processors
| RATING CRITERIA | Pricing & Contract | 4.38 | OUT OF | 5 |
| Payment Processing Features | 5.00 | OUT OF | 5 | |
| Account Features | 3.75 | OUT OF | 5 | |
| Expert Score | 4.19 | OUT OF | 5 |
Most of the providers on this list focus on medium- to high-volume restaurants that process $500,000 or more annually. Smaller seasonal restaurants, local caterers, or food trucks that fall short of that number will be better served by Square. This familiar payment processing platform offers in-person and online payment processing to any business with a Square account. Pricing starts at just 2.6% plus 10 cents for in-person transactions.
In our evaluation, Square earned 4.31 out of 5 stars, as it aced pricing, payment features, and accounting tools. Lack of 24/7 support, account instability, and slower deposit speeds prevented Square from earning a higher score. Its pricing structure is also designed for new and small businesses. While it offers volume discounts, those rates are not published.
Because Square is ideal for new and small businesses, it’s our top pick for the best merchant services for small businesses.
Square Pricing
When you look at Square’s pricing, you’ll notice the absence of a common payment processing word, “interchange.” That is because Square’s fees are truly flat-rate. Square doesn’t charge different rates for different credit cards. Visa, Mastercard, Discover, and American Express are all processed at the same rate. The only variable in Square’s rates is whether the card is present, manually entered, or processed online. If you make over $250,000 in annual revenue, you may qualify for custom pricing.
Transaction Type | Transaction Fee |
|---|---|
Tapped, dipped, and swiped in person payments | 2.6% plus 10 cents |
Online payments | 2.9% plus 30 cents |
Manually-keyed, card-not-present and card-on-file payments | 3.5% plus 15 cents |
Square offers a free magstripe reader to Payments subscribers. You can also purchase Square-enabled card readers outright or with an installment payment plan from the Square website.
Square Features
Signing up for Square’s payment processing is as simple as creating an account on its website and attaching your bank account. You can process payments via any smart device from mobile phones to an iPad or Android tablet. Square users also have the entire Square ecosystem—which offers solutions for invoicing, delivery management, an online store, online ordering, and the full-spectrum Square for Restaurants POS—at their fingertips.
If you are considering Square Payments for its easy integration with other Square products, you can get a free trial of almost any feature on the Square platform. Both the Square POS and Square for Restaurants POS also offer a completely free baseline membership.
What Square Payments Is Missing
High volume and high price point restaurants will see more savings with other providers. If your business grows quickly, or you have an unexpectedly busy week, you may experience longer than usual fund holds from Square. For small restaurants or operations like food trucks, however, Square is an excellent fit.
Fattmerchant
PROS
- Same-day funding options
- Excellent customer service
- Integrates with 99% of restaurant POS systems
- Monitor and respond to customer reviews
CONS
- Not a fit for small restaurants that process less than $10,000 per month
- Does not provide complimentary or leased equipment
- Not an all-in-one platform
- Software not included in the base price
| RATING CRITERIA | Pricing & Contract | 4.25 | OUT OF | 5 |
| Payment Processing Features | 4.38 | OUT OF | 5 | |
| Account Features | 3.56 | OUT OF | 5 | |
| Expert Score | 4.25 | OUT OF | 5 |
Like Payment Depot and CDGcommerce, Fattmerchant offers subscription-style, flat-rate credit card processing. Fattmerchant offers same-day funding and advanced analytics, two reasons it earned 4.1 out of 5 stars in our evaluation.
Its chargeback fees, limited customer service hours, and high monthly fees prevented it from earning a higher score. Monthly fees start at $99 per month plus 8 cents per swiped, tapped, or dipped in-person transaction, but the Omni software, which is required for virtual terminal users, starts at an additional $49-plus per month.
Fattmerchant Pricing
Fattmerchant offers a truly straightforward fee structure. Fattmerchant does not charge any cancellation fees, statement fees, or batch fees. Customers pay a monthly subscription fee based on their sales volume, with a flat rate per transaction fee. There is no percentage mark-up or complicated math to figure out what your rates will be.
Plans start at $99 per month for interchange plus 8 cents per swiped transaction or interchange plus 15 cents for keyed transactions. If you process less than $80,000 annually, Fattmerchant charges a flat 2.9% plus 8 cents per swiped transaction or plus 15 cents for keyed transactions. While the percentage is more expensive than Square, the lower flat per-transaction addition could make it more cost-effective.
You also will likely need to get Fattmerchant’s Omni platform. This software is not POS software but does give you reporting, a virtual terminal, review monitoring, and other features. Prices run $49 to $129 per month.
Fattmerchant sells several options for card readers via its website. It does not lease equipment, provide complementary equipment, or sell POS systems.
Fattmerchant Features
In addition to basic payment processing, Fattmerchant offers several features to streamline online or advance payments. You can create a simple webform to accept credit cards online. Restaurants with a catering arm or recurring clients will appreciate the ability to securely save client credit cards, download payment reports, and integrate with QuickBooks. This platform also supports credit card payments made by scanning a credit or debit card with smartphone cameras. With Fattmerchant’s Omni platform, you get advanced analytics, a virtual payments platform, ACH processing, and review management.
What Fattmerchant Is Missing
The only major pitfall to watch out for with Fattmerchant is that many services are add-ons. After the baseline membership, you will pay extra for:
- Customizations
- ACH processing
- Virtual terminal (for phone orders)
- Hosted website payments/online shopping cart
- Dispute management
- Same-day funding
- Terminal insurance
- QuickBooks Online Pro Sync
Dharma Merchant Services
PROS
- Reduced processing rate for high volume restaurants
- Next-day funding available
- Low monthly fees
CONS
- Not ideal for low-volume restaurants
- Doesn’t support high-risk restaurants
- Customer support is not 24/7
| RATING CRITERIA | Pricing & Contract | 4.25 | OUT OF | 5 |
| Payment Processing Features | 5.00 | OUT OF | 5 | |
| Account Features | 2.75 | OUT OF | 5 | |
| Expert Score | 4.31 | OUT OF | 5 |
Dharma Merchant Services offers payment processing solutions for bars and restaurants of all sizes, although large businesses will get the best deals. Its PCI compliance, mobile payments, and next-day funding options make Dharma a great fit for tight-margin restaurants concerned about cash flow. Dharma’s monthly fees start at $20 with a transaction rate of 0.15% plus 7 cents, plus interchange.
Limited customer service hours and the fact that it charges more for American Express transactions were two of the reasons Dharma did not rate as highly, but it topped the chart for payment processing features, earning 4.04 out of 5 stars overall.
Dharma Merchant Services Pricing
Dharma Merchant Services comes at a low monthly fee of $20, with transaction fees starting at 0.15% plus 7 cents per transaction, plus interchange. However, restaurants that process over $100,000 per month can get a reduced transaction fee of 0.10% plus 5 cents per transaction. Included is Dharma’s MX Merchant platform that acts as a virtual payment terminal, allowing you to process mobile payments and store customer payment information (a great option for high volume caterers).
You can purchase EMV terminals and PIN pads directly from Dharma Merchant Services, though it does not offer equipment leases. Prices range from $95 for a handheld card reader to $499 for a Clover Flex POS terminal. Dharma also charges a $25 fee for chargebacks, which is about industry standard.
Dharma Merchant Services Features
Dharma integrates directly with popular restaurant POS systems like Upserve and Revel. Since Dharma operates on the Fiserv and TSYS platforms, any POS system that works with Fiserv or TSYS should support Dharma Merchant Services. Dharma’s website offers troves of information for customers, including detailed outlines of their application requirements and a massive catalog of card readers and payment terminals.
Dharma Merchant Services is well-reviewed by users and offers customer support via phone and email Monday through Friday from 8 a.m. to 5 p.m. Pacific time. It also offers a comprehensive support database that is accessible 24/7 on its website.
What Dharma Merchant Services Is Missing
Restaurants that process less than $10,000 per month in sales will struggle to get approved for a merchant account with Dharma. Restaurants that sell ingestible CBD items may also be declined for being too risky. While Dharma’s customer service is well-reviewed, it would be nice to have phone support on nights when weekends, when restaurants are busiest.
Payment Depot
PROS
- Simple, flat-rate subscription model
- Great savings for high volume restaurants
- No hidden fees
CONS
- Not ideal for seasonal restaurant
- Very small restaurants may spend more
- Not the best fit if you process less than $20,000 per month
| RATING CRITERIA | Pricing & Contract | 3.75 | OUT OF | 5 |
| Payment Processing Features | 5.00 | OUT OF | 5 | |
| Account Features | 2.13 | OUT OF | 5 | |
| Expert Score | 5.00 | OUT OF | 5 |
Transparent and flexible pricing structure makes Payment Depot one of the cheapest credit card processors for established businesses, including restaurants. Rates start at $49 per month and interchange plus 15 cents per transaction. This higher monthly fee makes Payment Depot a better fit for higher-volume establishments, however.
We rated Payment Depot 3.84 out of 5 stars. It rocks the merchant services section, offering online, in-store, and virtual terminal payments for a simple subscription fee and a single transaction fee. There are no setup or cancellation fees, and every account comes with a free payment gateway and free reprogramming of any existing equipment. It falls short on account features, like 24/7 support and customer data analysis, but is an otherwise great value.
Payment Depot Pricing
Payment Depot offers four subscription tiers. Its model combines all your monthly fees into a single monthly membership ranging from $49 to $199 per month, depending on your sales volume. Its flat per-transaction fee ranges from 5 cents to 15 cents on top of the interchange rate charged by card-issuers.
Subscription Tier | Monthly Sales Volume | Monthly Fee | Transaction Fee |
|---|---|---|---|
Basic | Up to $25,000 | $49 | Interchange plus 15 cents |
Most Popular | $26,000–$75,000 | $79 | Interchange plus 10 cents |
Premier | $76,000–$150,000 | $99 | Interchange plus 7 cents |
Unlimited | $150,000+ | $199 | Interchange plus 5 cents |
For hardware, Payment Depot includes free card readers with all but the Basic membership, a basic terminal for the Most Popular plan, a Smart Terminal or Premium Gateway with the Premier plan, and a Free Clover Mini with the Unlimited Membership. You can purchase a wide variety of card readers, PIN pads, and even a full POS terminal via the Payment Depot website. Pricing for baseline readers starts at $99.
Payment Depot Features
On the back-end, Payment Depot operates on the Fiserv and TSYS networks, though most Payment Depot subscribers find that they get much lower processing rates through Payment Depot than they could obtain by working directly with Fiserv or TSYS. All Payment Depot merchant accounts are month-to-month, though you can get a discount if you are willing to pay annually.
If you opt for an annual membership, you will be offered a 90-day satisfaction guarantee. If after those first three months you aren’t happy with Payment Depot, it will refund your membership fees. Payment Depot advertises that it integrates with most restaurant POS systems, but it doesn’t provide a comprehensive list on its website. Like Dharma Merchant Services, Payment Depot should integrate with any POS that works with Fiserv and TSYS.
What Payment Depot Is Missing
High-volume and high price-point restaurants will save money on credit card processing with Payment Depot. Since your restaurant is on the hook for subscription fees even if you have a slow month, Payment Depot is not a great fit for low-volume or seasonal restaurants.
Toast
PROS
- Attached to a highly-rated restaurant-specific POS
- Flat rate transaction fees
- No hidden fees
CONS
- Requires upfront investment in an entire POS system
- Can be pricey for small restaurants
- Fees are not listed publicly
| RATING CRITERIA | Pricing & Contract | 2.00 | OUT OF | 5 |
| Payment Processing Features | 5.00 | OUT OF | 5 | |
| Account Features | 5.00 | OUT OF | 5 | |
| Expert Score | 4.19 | OUT OF | 5 |
Toast’s payment processing is a bit different from the others on this list. This payment processor is only available on the Toast POS system. Like Square, Toast operates with flat-rate transaction fees and does not charge hidden fees like the batch processing and statement fees that mass-market processors rely on. Unlike other merchant services we reviewed, Toast does not list its fees publicly. Instead, it quotes restaurants a flat rate fee based on sales volume and card-mix.
In our evaluation, Toast earned 3.79 out of 5 stars. It checked off every feature for payment processing and account tools and is specially designed for restaurants, but its pricing and contract obligations, which are tied to the Toast POS, bring its score down.
In general, we recommend that businesses use a credit card processor that integrates with their POS system. And, Toast offers the best POS system for restaurants.
Toast Pricing
To get Toast payments, you first need to become a Toast POS customer, so the pricing for Toast payments differs from others on this list. Because you need to invest in the full POS system, the upfront costs to enroll in Toast payments are considerably higher than opting for something like Fattmerchant or Dharma Merchant Services.
- Initial Fees: The POS starts at $79 per month, and there is a mandatory, one-time installation fee that starts at $499.
- Transaction Fees: Flat rate, based on a custom quote.
- Hardware: Hardware will depend on the terminals and card readers you choose. Toast offers remote card readers and in-built readers attached to terminals. Packages start at $899.
Considering that access to Toast’s payment processing is dependent on first buying into the Toast POS, this option has a considerably higher upfront cost than others on this list. Toast as a brand, however, exclusively supports restaurant businesses; so for many restaurants, it may be a worthwhile investment.
Toast Features
Toast is a full-featured restaurant POS that is styled to support restaurant businesses of all sizes. Toast payment processing is built into the POS, which was designed specifically for restaurants by a team of former restaurant workers. Restaurant owners that are looking for a straightforward payment solution that is built into their POS will find a lot to like about Toast.
The Toast ecosystem includes solutions for processing tapped, swiped, or dipped transactions as well as tableside payments and QR-code-based payments on customer smartphones. Online order payments and payments via self-service kiosks are also available.
What Toast Payments Is Missing
To get Toast payments, you first must be a Toast POS customer, which can set you back more than $1,000 just to get started. If you are a new restaurant looking for a payment and POS solution, though, this might not be a drawback. Toast POS earns consistently high ratings compared to the POS competition.
Bottom Line
When looking for the best restaurant credit card processor, you want a merchant service that understands the needs of restaurants and offers the best service for the best price. CDGcommerce tops our list because it provides excellent prices and strong features for restaurants. Contact CDGcommerce to discuss your needs and get an account started.
You May Also Like…
- Learn how credit card processing fees work and what to expect
- Read our definitive guide to restaurant software tools (what you need and how they work)
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