With evolved trends of payments, more and more businesses are turning to credit card payment processing systems. Advocates claim that this payment system is hassle-free, secure, and trackable. However, is credit card processing suitable for a diverse industry like food and beverage? Can restaurant owners benefit from this hyped payment mode? This post explores everything involved!
Benefits of Accepting Traditional Credit Card Processing
Traditional credit card processing may help businesses in several ways. Some of the most significant advantages include the following:
Easy Payment Tracking
Credit card processing systems enable businesses to trace payments effortlessly. Besides, the data of all the transactions processed through this payment system are stored securely. Businesses can generate a sales performance report for every transaction. In addition, traditional POS systems work electronically and comply with Payment Card Industry security standards, ensuring amplified safety.
Amplified Sales
Traditional credit card payment processing systems may help businesses to entice fresh customers and amplify profit margins. The evolved preference for payments has pushed buyers to spend using digital payments. Thus, businesses can expect to experience a sales boost when using credit card processing.
Highly Convenient
A restaurant credit card processing system is highly convenient as it helps businesses to expand their customer reach. Besides, this payment system enables restaurant businesses to elevate their product endorsement, leveraging phone orders, in-person sales, online sales, etc. Contrarily, if seen from the buyer’s point of view, most consumers prefer using credit cards as it’s secure and convenient than cash.
Highly Efficient
As credit card payments are processed electronically, and restaurant payment processing services send the payment directly to the merchant’s account, the entire procedure becomes faster and more efficient. There are no hassles like invoice collection, counting, transportation of fiat, sorting bills, etc. Consequently, the merchant can enjoy an improved cash flow.
Helps Achieve Legitimacy
Restaurant payment processing systems may help businesses achieve legitimacy. Showcasing reputable brands’ credit card logos adds credibility to the business and induces a sense of authenticity in buyers.
Convenient Setup
Incorporating a credit card payment system is extremely easy. The application for the merchant account is processed fast, and restaurant owners can use the system within 72 hours.
Cost Efficiency
Credit card payment systems don’t involve the daunting invoicing process. Consequently, businesses can save on postage, printer, extra workforce, and paper.
Improves Loan Eligibility
With a credit card payment processing system, businesses can boost their loan eligibility. Most online lenders can give a business an instant unsecured loan right away by evaluating its credit card processing statement.
How to Use Traditional Card Processing in Restaurants
Businesses can use a payment or credit card processor in different ways. These payment processors include point-of-sale systems, standard payment gateways, and mobile processors. With the help of these processing systems, business owners can take any kind of payment, no matter what it looks like.
Businesses can choose the type of credit card processor they want, based on the payment processing fee, the devices (mobile or tablet), and the features they offer. Following is a detailed explanation of all the payment alternatives mentioned.
POS System for the Restaurant Industry
Installing CRM-enabled POS software may help businesses synchronize business operations and sales. Reliable companies that process payments for restaurants ensure that their POS systems have advanced features that make them efficient and easy to use.
These features include an online ordering page, a customer directory, a credit or debit card reader, a cash register, an inventory tracking system, a menu management system, a signature capture system, a printer, and more. Above all, this payment system comes with affordable monthly fees (subscriptions). Businesses can use such systems to enhance the customer experience, ease customer management, and amplify sales.
Mobile Processors
Businesses can connect to a mobile device through this easy-to-use payment processor. These payment systems are ideal for businesses operating in a limited space.
Standard Payment Gateway
These budget-friendly alternatives sport an array of advanced features. For example, they allow users to swipe or put in a credit card, perform ACH transactions, process mobile ordering, etc. But these things are a bit hefty, and they can only work online if connected to the internet. Besides, they are a little more expensive than mobile processors.
Common Payment System Challenges
Usually, restaurant owners face a few challenges when using cash-only systems. They may include the following:
- Keeping track of records of cash payments may look daunting. However, when restaurant owners use a POS system, they can maintain and save sales records with a time stamp.
- Saving customers’ information when handling manual payments may be extremely tricky. Advanced POS systems, however, allow business owners to save customers’ info and access an array of other convenient features.
- With cash payments, keeping a record of customers’ data is challenging. Consequently, business owners can’t observe their customers’ preferences. Leveraging payment processing systems, restaurant owners can easily keep track of their buyers’ habits.
- Manual tracking of inventory management and other overhead costs is challenging. However, with an efficient payment system, business owners can minimize the room for mistakes.
Is Traditional Credit Card Processing What Your Business Needs?
You can use any of the three traditional ways to process cards, but the POS system is generally thought to be the best. Besides, you can turn to a mobile processor for its budget-friendliness. If you are running a large-scale restaurant chain, you can also install standard payment gateways.
A payment processing system will cost you money through credit card processing fees or processing costs. However, the system’s benefits more than make up for the fees.
Conclusion
Traditional credit card processing may help businesses manage different operations quickly and efficiently. Using a credit processing system, for example, they can easily track and handle payments, watch how customers act, and keep customer records. So, businesses in the 21st century should consider this alternative if they want to improve their operational efficiency, sales, and customer base.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.