Restaurant Credit Card Processing Guide: 8 Best Merchant Services (& What To Look For)

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. And 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. It’s an excellent indicator of how the company operates.

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)

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

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 restaurant-specific POS technology.

Restaurant owners who want a processor that offers pricing that scales to fit their eatery as it grows will find what they want in CDGcommerce. Over the past decade, CDGcommerce has maintained a client retention rate of over 97%. That speaks volumes about the kind of experience most businesses have had with CDGcommerce.

Restaurateurs will get the following features with CDGcommerce:

• 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.

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.

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.

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

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.

Square isn’t like the 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 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.

Square’s appeal is that it offers a vast ecosystem of different merchant services under its payments umbrella:

• Flat-rate payment processing
• A built-in payment gateway
• A free POS
• Affordable card readers, an all-in-one terminal, and full POS register kits
• 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.

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

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.

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

• Monthly fee: $69-$399/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.

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.

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.

Clover’s 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.

When purchased directly from Clover, the company’s quick service dining plans run from $100/month to $190/month for 36 months for hardware and software, depending on your subscription tier. Alternatively, you can pay $54.95/month to $69.90/month if you opt to pay the full price for the equipment ($799 to $2,398) outright.

Clover’s full-service dining plans run from $160/month to $310/month for 36 months, or $84.95/month to $114.85/month if you buy the equipment ($1,699 to $4,097) outright.

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.

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.

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 scoop.

Toast features 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.

• 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

Just remember that Toast’s services come with a two-year contract, and you’ll have to pay an early termination fee if you want to end things early. Additionally, the Pay-As-You-Go plans include an $85/month “inactivity fee” that applies if you don’t process any card transactions within a 90-day period.

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

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.

TouchBistor features include:

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

• 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