Restaurant Credit Card Processing Guide: 9 Best Merchant Services (&amp; What To Look For)

Get Started With National Processing

Get a free Clover Go card reader from National Processing when you sign up. Claim your card reader.

Pros

Interchange-plus or membership pricing
Month-to-month billing
Discounted rates for restaurants
Full line of Clover terminals and POS systems

Cons

Free equipment may require a long-term contract
Monthly fee

National Processing Features

National Processing (not to be confused with the terrible and now-defunct National Processing Company/NPC) exemplifies the qualities we like to see in a restaurant payment processor. Beyond National Processing’s reputation for being honest and ethical, the processor offers the following features:

Your choice of interchange-plus or membership pricing
A full line of Clover terminals and POS systems, including the option of a “free” Clover Go terminal
Mobile processing with a Clover Go card reader
No long-term contract if the processing hardware is purchased outright
Low-cost ACH and eCheck processing (available as an add-on)

National Processing Pricing

We love that National Processing offers special pricing to restaurant owners: $9.95/month and a rate of 0.14% + $0.07 above interchange. This rate is lower than NP’s standard retail rate (as well as its eCommerce rate). In addition, when signing up, restaurant owners can get a free Clover Go terminal, which accepts both EMV and NFC-based payments — both of which are increasingly important for restaurants to accept.

Just know that the “free” terminal requires you to sign a longer-term contract that includes a $295 early termination fee. Forgo the free terminal, and your processing agreement will be month-to-month with no ETF.

Here are some other National Processing pricing details:

Monthly fee: $9.95 with an interchange-plus plan, $59-$199/month with a membership plan
Transaction fees (interchange-plus pricing): Interchange + 0.18% + $0.10/transaction for retail, interchange + 0.29% + $0.15/transaction for eCommerce
Transaction fees (membership pricing): $0.05 to $0.09/transaction
ACH/eCheck processing (optional): $15/month & 0% to 1.5% + $0.48 per transaction
Chargeback fee: $15

When To Choose National Processing For Restaurant Credit Card Processing

With its low processing rates for foodservice industry, National Processing is an excellent choice for restaurateurs — particularly those seeking to use Clover’s POS hardware and software. What’s more, the company’s reputation is such that its customer reviews are overwhelmingly positive, which is not the norm in the payment processing industry.

2. Square: Best Processor For Lower-Volume Restaurants

Square

Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.

Pros

Predictable flat-rate pricing
No monthly fees
Massive feature set
Affordable card readers

Cons

Account stability issues
Advanced features can get expensive

Square Features

Square isn’t like the other traditional merchant account providers listed here. Unlike them, Square — like PayPal and Stripe — is a third-party processor. Whereas a merchant account provider gives you a unique merchant account after thoroughly vetting your business, TPPs give you access to a giant merchant account shared by all the service’s users. That means you get approved much more easily and quickly, but you run a higher risk of having your funds held or your account terminated due to the stricter transaction-level scrutiny. To protect your business, read our article on avoiding funding holds and account terminations.

Square’s appeal is that it offers so many different merchant services under its payments umbrella:

Flat-rate payment processing
A built-in payment gateway
A free POS
Affordable card readers and an all-in-one terminal
Invoicing
Inventory management
Developer tools
Numerous POS & accounting integrations

You can even customize your Square app settings to accept tips, either electronically or on a printed receipt. You can also integrate with other POS systems if you wish.

Square Pricing

As for Square’s fees, you’ll pay 2.6% + $0.10 per in-person transaction. No contracts, no ETFs — just one simple flat per-transaction rate with no monthly fees. Or at least that’s the case if you use Square’s free POS, which should serve you just fine if you’re running a cafe or other relatively low-volume eatery.

For full-service restaurants and bars that need a more robust POS system with restaurant-specific features and online ordering, there’s Square for Restaurants. Here’s what you’ll pay for this specialized POS:

Basic plan: $0/month
Plus plan: $60/month for your first countertop POS device, $40/month for each additional countertop POS device, and $50/month for each mobile POS device

When To Choose Square For Restaurant Credit Card Processing

Square’s extensive feature set and restaurant-specific POS system present a compelling package for all kinds of eateries. However, higher-volume restaurants may be able to save on payment processing by going with a full merchant account provider instead.

Get Started With Square

3. Dharma Merchant Services: Best Processor For High-Volume Restaurants

Dharma Merchant Services

Get Started With Dharma Merchant Services

Pros

Interchange-plus pricing offered exclusively
Month-to-month billing
Discounted rates for restaurants
Outstanding transparency

Cons

Not recommended for restaurants processing under $10k/month
Monthly fee

Dharma Merchant Services Features

There’s a reason we give Dharma Merchant Services a 5-star score and our enthusiastic recommendation as a full merchant account provider. Actually, there are several reasons:

Interchange-plus pricing
Fully transparent pricing structure
Dharma sells its processing hardware directly — no overpriced equipment leases
Excellent reputation in the industry
Discounted processing rate for restaurants
Mobile processing app & card reader available

Dharma Merchant Services Pricing

The fact that restaurateurs pay a discounted rate of 0.15% + $0.08 above interchange makes Dharma particularly attractive for restaurants. Here are some of Dharma’s other rates and fees:

Monthly fee: $25
Transaction fee: Interchange + 0.15% + $0.08 for retail & hospitality, interchange + 0.20% + $0.11 for eCommerce
Chargeback fee: $25

You’ll also get a discounted processing rate if you process more than $100,000/month.

When To Choose Dharma For Restaurant Credit Card Processing

Dharma Merchant Services is one of the most honest and transparent providers of merchant services around, and its restaurant processing rates make it an excellent choice for higher-volume eateries.

The only downside to Dharma is that you need to process at least $10,000/ month to see cost savings with its merchant accounts. Restaurants that surpass this monthly threshold will be hard-pressed to find better restaurant payment processing, however.

4. CDGcommerce: Best Restaurant Credit Card Processing With Scalable Pricing

CDGcommerce

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Pros

Volume-appropriate pricing schemes
Month-to-month billing
Free gateway & virtual terminal

Cons

The cost of modules can add up
US-based merchants only

CDGcommerce Features

Why are we such fans of CDGcommerce? For starters, CDGcommerce offers month-to-month billing with no long-term contracts or ETFs. For another thing, the company offers three different pricing schemes to fit your processing volume.

Furthermore, although CDGcommerce’s specialty is eCommerce, restaurant owners have a particular reason to check out CDGcommerce, as it offers the following restaurant-specific POS technology:

Reservation software
Tip adjustments
Debit/small ticket discounts
A mobile card reader that supports EMV and NFC payments

The system is also very modular, so depending on the plan you choose, you might end up incurring a few extra costs if you want more POS modules.

CDGcommerce Pricing

With CDGcommerce, your processing rates scale to fit your sales volume. Those processing less than $10K/month will want simplified flat-rate pricing, while those processing over $10K/month will want interchange-plus pricing. What’s more, those processing $25,000/month or more can get special membership pricing.

Monthly fee: $0 with flat-rate pricing, $19-$49/month with interchange-plus pricing, $49-$199/month with membership pricing
Transaction fees: 2.75% + $0.30 with flat-rate pricing, interchange + 0.25% + $0.10 with interchange-plus pricing, interchange + $0.05-$0.10 with membership pricing
ACH/debit fees: 0.75% + $0.15 per transaction

We also like the fact that you get a payment gateway for no cost whatsoever.

When To Choose CDGcommerce For Restaurant Credit Card Processing

5. Payment Depot: Best Restaurant Credit Card Processing With Membership Pricing

Payment Depot

Get Started With Payment Depot

Pros

Transparent membership pricing
Month-to-month billing
Free gateway & virtual terminal

Cons

Not cost-effective for low-volume businesses
US-based merchants only

Payment Depot Features

Payment Depot is another restaurant merchant account provider we’re happy to recommend. Payment Depot enjoys a sterling reputation in the industry, and the feedback from merchants is overwhelmingly positive. Again, this is not the norm in the payment processing industry.

Here’s some of what Payment Depot offers:

Simplified membership pricing
Complete line of Clover POS equipment
Payment gateway & virtual terminal for no extra charge
Mobile processing via SwipeSimple

Payment Depot Pricing

With the membership pricing offered by Payment Depot, instead of paying various fees along with marked-up percentages on your sales, you’ll pay a fixed monthly fee and a fixed per-transaction fee that varies depending on your subscription tier.

Monthly fee: $59-$99/month
Transaction fees: Interchange + 0% + $0.07-$0.15

Under membership pricing, restaurants with a high processing volume stand to save money over interchange-plus pricing. In contrast, restaurants with smaller processing volumes may end up paying more than they would under interchange-plus pricing.

Payment Depot offers true month-to-month billing with no long-term contracts or ETFs. However, you do have the option of paying annually, thus saving you money on membership fees.

When To Choose Payment Depot For Restaurant Credit Card Processing

Payment Depot’s membership pricing makes it a solid processing choice for higher-volume restaurants, and its feature set provides eateries with more than enough to work with.

4 Great Restaurant POS Systems With Built-In Merchant Services

Now more than ever, foodservice businesses have particular POS needs that must be met. That’s why we wanted to spotlight the following restaurant-focused POS systems with built-in restaurant merchant accounts.

Read our article on your best restaurant POS options for an even more in-depth look at your options.

1. Toast: Best Restaurant POS For Advanced Features

Toast POS

Get Started With Toast POS

Pros

Advanced restaurant features
Advanced employee management
All-in-one POS

Cons

Limited pricing disclosed online
Early termination fee

Toast Features

Toast is both a POS system and a credit card processor. Toast’s POS is built for the restaurant industry and has a lot to offer restaurants and bars. Options include:

A purpose-built tableside ordering device called Toast Go
Mobile ordering
Check splitting
Customized tip percentage options
Menu creation
Digital receipts
Time tracking
Advanced reporting

Plus, for an extra $25/month, you can get access to Toast’s fully integrated loyalty program.

Toast Pricing

Monthly fee: $0/month with the Pay-As-You-Go plan, $69/month-$99/month with the Standard plan (depending on your hardware package)
Up-front fee: $0 with the Pay-As-You-Go plan, $609-$999 with the Standard plan (depending on your hardware package)
Transaction fees: 2.99% + $0.15 with the Pay-As-You-Go plan, 2.49% + $0.15 with the Standard plan
Online ordering: $50/month

When To Choose Toast For A Restaurant POS

Toast offers a feature-rich POS and processing package for foodservice businesses of all types. What truly differentiates Toast, however, is its devotion to customer service, offering extensive technical support and training material — all for free. It’s one of the major reasons why we’re such fans. The only things we’re not fans of are the multi-year contracts and the early termination fee you’ll likely have to agree to.

See our Toast POS review to get the whole story.

2. Clover: Best Restaurant POS For Customization

Clover POS

Get Started With Clover POS

Pros

Full-service and quick-service plans are available
Several available hardware setups
Competitive pricing when purchased through Clover.com

Cons

Must be paired with Fiserv
Some Clover resellers are disreputable

Clover Features

Clover’s popular and easy-to-use full-service restaurant POS is packed with the features you’ll need for just about any type of eatery. These features include:

Online ordering
Online payments
Contactless delivery
Dynamic floor plans that enable you to adjust your layout for social distancing etc.
Servers can also use a mobile Clover Flex for tableside ordering and payments

As far as hardware goes, a Clover Station with a Clover Flex is best suited to large restaurants, while the Clover Mini works best for small-to-medium eateries with a limited number of tables.

Clover Pricing

When purchased directly from Clover, the company’s quick service dining plans run from $90/month to $175/month for hardware and software, depending on your subscription tier. Clover’s full-service dining plans run from $150/month to $290/month.

As for payment processing:

Transaction Fees: 2.3% + $0.10 (assuming you use Clover for payment processing and not another provider)
Transaction Fees (keyed-in): 3.5% + $0.10

Remember, these are the fees that apply when you buy from Clover directly. Pricing will vary greatly when you look at Clover resellers.

When To Choose Clover For A Restaurant POS

Clover provides a uniquely customizable restaurant POS system with numerous hardware and feature options. However, Clover is unusual because it only works with a Fiserv merchant account. Not all Clover resellers are reputable, so if you decide to go with Clover, get it directly from Clover.com or a reputable Clover reseller.

3. TouchBistro: Best Bilingual Restaurant POS

TouchBistro

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Pros

Competitive monthly cost
Numerous integrations
Easy to use
Bilingual support

Cons

Inconsistent customer support
Add-ons can get pricey

TouchBistro Features

TouchBistro is a restaurant POS that combines supreme ease of use, versatility, solid features, and mobility with affordable pricing and 24/7 customer service. Features include:

Order taking
Table management
Menu management
Kitchen display system
Reporting
Employee management
Payment processing with check-splitting capabilities

TouchBistro Pricing

Monthly fee (base POS): Starts at $69/month
Reservations: $229/month
Online ordering: Starts at $50/month
Loyalty: Starts at $99/month
Marketing: Starts at $99/month
Gift cards: Starts at $25/month
Transaction fees: Not disclosed

When To Choose TouchBistro For A Restaurant POS

TouchBistro is particularly well-suited to smaller foodservice businesses (such as food trucks), but its recent feature additions have made it a solid choice for larger restaurants as well. What’s more, the app can be used in Spanish as well as English.

TouchBistro’s one downside is that it’s a bit lacking in inventory, employee, and customer management, so you may need to purchase more software than you would with some other providers, depending on your needs.

4. Lightspeed Restaurant: Best Restaurant POS For Small & Mid-Sized Restaurants

Lightspeed Restaurant POS

Get Started With Lightspeed Restaurant POS

Limited time offer. Sign up to Lightspeed by March 31st and get up to $1,500 in complimentary hardware. Claim this offer today.

Pros

Competitive monthly cost
Very customizable
Raw ingredient tracking

Cons

Limited inventory management
Moderate learning curve

Lightspeed Restaurant Features

Lightspeed Restaurant gives you a choice of three integrated processors (2ACCEPT, TSYS, and WorldPay). You can use a non-integrated processor, but then your terminal won’t be connected to your Lightspeed Restaurant account.

Lightspeed Restaurant’s features include:

Multilocation support
Contactless payments
Gift cards
Customer loyalty
Online ordering
Inventory management
Reporting
Menu management
Delivery management
Employee management

Lightspeed Restaurant Pricing

Monthly fee: $90-$519/month, depending on your subscription tier
Transaction fees: 2.6% + $0.10
Transaction fees (keyed-in transactions): 2.6% + $0.30

Note that these transaction fees apply when you use Lightspeed’s integrated processing. If you go with another processing option, your fees will vary.

When To Choose Lightspeed Restaurant For A Restaurant POS

We gave Lightspeed Restaurant our highest possible rating on account of its easy-to-use interface, expansive feature set, its eCom For Restaurants platform, contactless ordering, exceptionally deep menu-building functionality, extensive reporting, and more. All told, it’s our pick for the best restaurant POS for small- to mid-sized foodservice businesses.