If you have an electronic payment terminal in your restaurant, which you probably do, you're probably paying commissions to a payment service provider. So far, so good. But there's sometimes a gulf between what's advertised and what you're actually charged. Commissions, technical fees, fine print and "included" options that aren't - do you really know how much your POS terminal costs?
In this article, we'll help you find out: which fees are legitimate, which are abusive or unclear, and above all, how to avoid paying more than you need to.
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With over 6 out of 10 card paymentstransaction fees are becoming one of the leading invisible cost items. So it's best to understand what's behind every figure and percentage displayed by your service provider.
When signing up with a payment service provider, restaurateurs look first and foremost at the transaction commission, at around 1.7% of the amount collected via credit card.
But beware, this rate varies according to several criteria: the type of card (Visa, Mastercard, Amex...), the channel (contactless, online, QR code), or even the monthly volume, including sales made on site, by delivery, Click and Collect, etc. Also, beware of the "from" mention, which may conceal an unattractive Eftpos terminal pricing below a certain threshold.
Another point often overlooked: ancillary costs. Terminal rental can cost between €20 and €40 a month, even for a basic device. Some service providers also add installation costs, even though you can install it yourself. And if your sales are low for a period, beware of the minimum monthly commission charged: you'll pay anyway.
It's often in the fine print that unpleasant surprises lurk. Some charges do not appear on the commercial quotation, but in the General Sales Conditions (GSC).
For example, technical support is not always included: you could end up paying €0.30 per minute of call or having to subscribe to a monthly package. Another point that should attract your attention is the chargeback fee in the event of a dispute with a customer. In some cases, this can amount to €25 per case, even if you're right. Added to this are sometimes charges for not using the VSE, yes, even if you're closed, and costs for early contract closure.
There's no such thing as a "free" VSE. Even so-called no-commitment offers include fixed costs (such as rental or maintenance) and variable costs (the aforementioned commissions). Other elements, such as access to the merchant portal or security updates, may also be invoiced.
Some providers impose a floor rate or minimum billing, which means you may pay a fee even if you haven't had any transactions that month. A real trap for seasonal establishments or recently opened restaurants.
👉Further information: Simplify your restaurant checkout with IO Pay
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It's sometimes tempting to skim a payment service provider's contract and then sign it straight away. But that's where the nasty surprises often lurk.Â
Before signing, or when renegotiating your contract with a payment service provider, there are a number of elements that need to be carefully examined. Start with the commitment period: this is often between 24 and 36 months. Then check early termination fees: these can exceed €150, not to mention penalties for returning equipment.
You should also be aware of rate indexation. Some contracts allow rates to be revised, sometimes without clear notification. Finally, ask for a simulation based on your actual collection volumes, not just a standard estimate.
Enticing offers that promise you very low commissions often conceal a quid pro quo: outsourced support, imposed equipment or very long payment deadlines. Here are 4 warning signs:
Have you identified one or more of these signals? Ask questions, seek clarification and compare. And if you're not satisfied with the answers, it's best to turn to another service provider.Â
It's a fact of life: restaurateurs have had to wait 7 to 10 days to receive their funds, paid chargeback fees in the event of an unhappy customer, or worse, found themselves paying double invoicing because they had signed two overlapping contracts (bank + independent service provider).Â
All these unforeseen events weigh heavily on your cash flow, complicate day-to-day management and erode your margins, often without you even understanding where the problem lies. Being vigilant on these points means preventing losses that can easily be avoided with a good contract audit.
Payment contracts are negotiable, and as a restaurateur, you have more leverage than you might think, provided you activate the right levers at the right time.
Three strategic moments give you real negotiating power. The first, at the end of a contractual commitment: you're free, and therefore stronger. The second, after 6 to 12 months in business, when you have figures to show for it. Lastly, if you open a second outlet, you represent a greater potential volume: it's the perfect opportunity to demand more.
To negotiate a contract to your advantage, focus on these three key points:
You can also choose between fixed or variable costs, depending on your business model. If you have a high, stable volume, a fixed monthly fee may be more profitable.
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Banks are reassuringly solid, but their pricing is often less clear. Independent service providers, on the other hand, are more flexible, but require a little more vigilance with regard to contractual conditions. Take advantage of the competition, and don't forget to ask for a detailed, costed quote.
👉 To find out more : Guide: choosing the best cash register software for your restaurantÂ
Understanding the costs associated with your payment service provider is one way of regaining control over an expense that is often underestimated, but which weighs heavily on your margins. By taking the time to analyze, compare and negotiate, you can secure your cash flow without sacrificing service quality. And in the end, every euro you save is another opportunity to make your business grow and last.
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