Accepting credit cards as payment is confusing, but it does not have to be!  Learn how to overcome the three most confusing parts of credit card payment acceptance with a merchant account service provider. 

Most people agree that the most confusing things about credit card acceptance are the merchant account service pricing.  People get confused here because most people do not do their research to find out what a competitive price is, and instead rely on a sales rep.  Since most small business owners are very busy, they will simply reach out to their bank for merchant account services.  Sometimes this is the best option, but it is still smart reach out to a few other vendors and banks to make sure you are getting the best deal on your merchant account service.

Small business owners often get confused because of the many different pricing models involved with various merchant account services.  While the pricing model depends on the provider, the two most commonly used methods are the tiered pricing and interchange-plus methods.  When utilizing the tiered pricing model, the vendors decide the rate that each merchant qualifies for.  On the other hand, interchange-plus utilizes rates that are pre-set by the credit card company. 

This pricing model is much more transparent, but can still be confusing because small business owners do not understand the pricing criteria.  To obtain total clarity, small business should decide which type of pricing model each merchant account service provider offers and which kind works best for their business. You should also make sure you understand the pricing structure 100% so that there are no surprises!

After you understand the process of getting an accurate quote and evaluating pricing models, you are on the right track to understanding payment acceptance!  

According to modern statistics, people in the United States spend an average of $181 a month on restaurant meals, making it easy to see why opening a restaurant is such a popular entrepreneurial dream.

Many new restaurant owners make the mistake of thinking they have to choose a credit card processor they've never heard of to process transactions; the sort of company they imagine established restaurants and other larger business models already use. However, new entrepreneurs can and should turn to a familiar bank when possible as long as it offers the type of merchant services that can handle a restaurant's unique needs. In fact, most established restaurants and larger business models already work with the same banks you are familiar with on a personal and consumer level.

A restaurant merchant account should offer a few simple things to make it easier for you to:

• Get paid
• Get through the business day with fewer headaches
• File taxes, and
• Pay employees

What to Look for in a Restaurant Merchant Account

1. Software with a Simple Learning Curve

Right out of the box, any software that accompanies your merchant account should be easy to use, yet offer you fluid and modern functionality.

2. Software with a Digital Mind for the Restaurant Business

Because you have to spend enough time keeping staff members on their toes and your customers happy, a good merchant processor's software package should easily keep up with the fast pace of your food business without much input from you. The software should also be able to handle new information, menu changes and course of business changes with ease like:

• Sales
• Daily plate specials
• Expanding menus
• Seasonal items

The restaurant merchant account software should also handle administrative tasks for you, putting out easy-to-read, correct printouts for your records. In the food business, inventory is especially important because of seasonal price fluctuations and food spoilage. Your software should help you keep track of items that you need reorder and the items you already have in stock.

3. Modern Expectations Met

The merchant processor you choose should also accept every credit card out there. Though this is easier now than ever before, (since most cards have one of a few major logos), it is still important to make sure for yourself that the company you choose accepts everyone.

Customer service is also incredibly important. So many merchant account processors outsource their customer service to other countries and to people who are not qualified to handle your important business concerns in a timely, professional manner. When it comes to your business and livelihood, you should know that you are going to receive excellent customer service every time you contact your service provider via chat, phone, social media or email.

The benefits of offering customers alternative means of payment through restaurant merchant services processing are limitless. It is important to choose a provider who offers a comprehensive, efficient, and budget friendly system. PCI regulation compliance is also a major concern of restaurant owners, employing a system that maintains PCI compliance is essential to success.

Choosing a merchant service provider that is right for your business depends on outlining your unique restaurant credit card processing needs. Your service provider should offer a scalable system which allows for growth or downsizing. Restaurant tablet POS systems should be technologically advanced but easy for you and your staff to use. Having a system that quickly submits and processes information allows your staff to be efficient, productive, and accurate with meal ticketing and sale finalization.

If your business relies on mobile services, your restaurant merchant account provider must allow your staff to process sales in the field. Mobile credit card processing enables your staff and can boost your sales. When your restaurant is attending a festival or foodie event, you can offer your customers the convenience of paying for your services with their debit or credit card.

PCI compliance regulations outline how restaurant owners can avoid customer information fraud. Customer and company data breach can be a serious hindrance and maintaining PCI compliance will help you avoid unneeded risk. 

Restaurant credit card processing & PCI Compliance?

The Payment Card Industry Data Security Standard outlines the requirements for all merchants that store, process, or transmit customer data. By using a POS system that is PCI compliant you are mitigating compromises, preventing storage of sensitive customer data, and supporting the PCI-DSS standard for cardholder safety and security.

If your restaurant tablet POS system is not PCI compliant, you could incur penalties and fines that reach the amount of $50,000 or more. You will also be classified as a Level 1 merchant which faces yearly audits of PCI regulation compliance. These audits can cost between $25,000-$35,000 per year. 

In order to ensure your restaurant merchant account provider is PCI compliant, it is important to check the validation list often. Remember PCI compliance regulations can change and adjust each year, be sure to check with your provider annually to ensure your systems remain up to date with compliance regulations.

Statistics show an increasing percentage of American shoppers are using credit cards over cash when they arrive at the checkout counter. In fact, only 27% of USA sales transactions are completed using physical tender (Source: Forbes.com). As higher plastic payment rates show changes in consumer behavior, small businesses accepting credit cards is likely to increase. Although many businesses disregard credit card transactions due to fees, the pros outweigh the cons.

Credit card processing usually incurs payment fees of 2-5%. While many see this as a hindrance, it is important to consider the potential value of a secure merchant services account. With credit card transactions on the rise, many businesses are finding additional processing fees are well worth the ROI (Return on Investment). Of the numerous advantages, small businesses accepting credit cards benefit from a simple, fast and safe transaction process. Data encryption and fraud protection maximizes security measures while wireless online connectivity has greatly surpassed dial-up transaction speeds, making credit card processing easier and more attractive to consumers.