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Website design By BotEap.comThe debate continues every day about credit card processing fees. Newbies want information on who is the “best” processor, when what they really mean is “cheapest”. Someone with something to sell always replies “check my page” or “text me and I’ll help you.” Then my favorite answer always comes up: “charge you a fee, that’s what I do.” Comments will also be flooded with “Square” and “Clover” followed by complaints from naysayers with each company.
Website design By BotEap.comALL, and I mean all, companies have complaints about their operation. Customer service, late / slow deposits, hidden fees, frozen accounts, brokers, different fees, equipment fees, ongoing charges, etc., etc. Square has them, Clover has them, just like all other companies. Asking for my opinion or something else in a public forum like Facebook groups will only get you a limited response based on extremely limited experience. I have worked in this business since 1977 and have been taking credit cards since 1990. I started with Square in 2010 and with all that time in foodservice I have only used a total of 5 different processors. Each with its own problems and benefits.
Website design By BotEap.comYou should also understand that there are two different types of processing companies. Square (PayPal Here, Intuit ToGo, etc.) are flat rate aggregators. Which means that the rate is exactly the same no matter which card is used and without merchant account is required. This makes the threshold to start a lot simpler for the average food vendor. Clover (and many other services) are merchant account processors. Which means they require a merchant account (which some people won’t qualify for), as well as possibly charging variable fees based on card type and brand. Comparing the two types of accounts is unfair, as they have completely different benefits and application requirements.
Website design By BotEap.comFor a complete understanding of each type of processor and unbiased reviews, go to the Merchant Maverick website and check their reviews. Choose the processor that meets your financial needs and has fees and fees that your business can afford. Also understand what you need from the hardware they offer. Do you need a simple POS or one with a lot of inventory control, payroll functions, loyalty programs, etc.? Or do you just need to process credit cards?
Website design By BotEap.comHere’s what you need to know about accepting credit and debit cards. Keeping it simple for street vending.
- Website design By BotEap.comAccepting cards is a MUST for street vending. Over 80% of ALL payroll is deposited directly. Street food vendors must be convenient not only in location, but also in payment options.
- Website design By BotEap.com80% of consumers prefer to use debit / credit cards when making purchases. On the other hand, only 14% prefer cash. Not accepting cards scares away business.
- Processing fees are part of doing business as well as buying inventory, paying staff, buying gasoline, obtaining permits and licenses, and any other expenses in your business.
- Website design By BotEap.comDo not accept letters. (Risk of driving away business)
- Website design By BotEap.comPass the fees on to your guests as a “convenience fee.” (They appear cheap and small-time)
- Website design By BotEap.comOffer a “cash discount program.” (It looks like a gas station)
- Website design By BotEap.comDo the math when setting the menu price. (Looks like a professional business person)