Payment processing
Interchange-plus vs. flat-rate processing
Use one month of restaurant card sales to compare two written quotes, from the rate on the first page to the total you would pay.
Compare the same month
Read the interchange-plus quote
Interchange varies with factors such as the card and how it was accepted. The provider passes through interchange and adds its own markup. Find the network fees, the markup percentage and any fee per payment. Ask which charges are bundled.
Read the flat-rate quote
A flat rate bundles costs into a stated percentage, often with a fee per payment. Find the rate for each sales channel. A card tapped at the counter may cost less to process than one entered over the phone.
Work through an example
For illustration, take $30,000 in counter sales across 1,000 card payments. At a flat 2.7% plus $0.10 per payment, the total is $910. If interchange and network fees total $600, a markup of 0.4% plus $0.10 per payment and a $25 monthly fee bring the second quote to $845.
Check what can change the total
Ask about monthly minimums, gateway fees, refunds, disputes and cancellation terms. Divide total monthly processing fees by the same card sales to get each effective rate. Repeat with a month that has more online orders or smaller checks to see how the comparison changes.