Restaurant Payment Processing

Fast, Affordable Solutions for Restaurants

Accept Payments Faster, Save on Fees, and Serve More Customers

Coastal Pay’s restaurant payment processing is built for the speed and complexity of food service operations. Accept all payment types (credit cards, debit cards, Apple Pay, Google Pay, contactless), process transactions in 2-3 seconds, manage tips seamlessly, integrate with your POS system, and reduce processing costs by up to 40% with our transparent interchange-plus pricing and surcharging options.

Why Restaurants Choose Coastal Pay:

Lightning-fast transactions (2–3 seconds) reduce table turn time
Tip management built-in with adjustments and pooling
Contactless payments for hygiene and speed
Integrate with major restaurant POS systems
Save 25–40% on processing vs. traditional providers
24/7 support that understands restaurant operations

Why Restaurant Payment Processing is Different

Restaurants have unique payment processing needs that generic solutions don’t address.

Restaurant-Specific Challenges

High transaction volume with low average tickets:

100–500+ transactions daily
Average ticket: $15–$75 (varies by concept)
High processing fee percentage impact
Need for fast transaction speeds
Equipment must handle heavy use

Tip processing complexity:

Tips added after authorization
Server tip pooling and distribution
Tip adjustment windows (24–72 hours)
Gratuity vs. service charge differences
Tax implications and reporting
Fair Labor Standards Act compliance

Speed requirements:

Table turn time critical to revenue
Long payment processing = lost tables
Peak hours demand fast throughput
Kitchen timing affected by payment delays
Customer satisfaction tied to speed

Multiple payment scenarios:

Dine-in (table service)
Quick-service counter
Bar tabs
Takeout and delivery
Online ordering
Curbside pickup
Split checks and party payments

Hygiene and contactless needs:

Post-pandemic contactless preference
Minimize card/device handling
Sanitization concerns
Contactless = faster and safer
Customer expectations for modern payment

Tight profit margins:

Restaurant profit margins: 3–6% typical
Processing fees: 2–4% of revenue
Processing costs = major expense
Small savings = huge margin impact
Need aggressive cost reduction

How Coastal Pay Solves Restaurant Problems

Speed-optimized processing:

2–3 second transaction times
Fast contactless payments
Pre-authorization for bar tabs
Quick split payment handling
Minimal customer wait time

Flexible tip management:

Add tips after transaction
Automatic tip adjustment
Tip pooling and distribution
Server tip reports
Customizable tip percentages
Suggested tip calculations

Cost reduction programs:

Interchange-plus pricing (save 25–40%)
Surcharging programs (offset 85–100% of fees)
Cash discount programs
Dual pricing options
No hidden fees
Transparent monthly billing

Restaurant POS integration:

Toast
Square for Restaurants
Clover
Lightspeed Restaurant
TouchBistro
Aloha
NCR Silver
Revel
Upserve
Custom integrations

Multiple acceptance channels:

Tableside payment terminals
Countertop terminals
Mobile payment tablets
Online ordering integration
QR code payments
Tap to Pay on iPhone/Android
Integrated kitchen displays

Restaurant Payment Processing Solutions

Tableside Payment Processing

Bring payment to the table for faster service and higher tips.

Tableside terminals:

Wireless handheld devices
EMV chip card acceptance
Contactless NFC (Apple Pay, Google Pay)
Built-in receipt printer
Long battery life (full shift)
Server assignment tracking
Tip entry on device

Benefits of tableside payment:

Faster table turns: Process payment at table, no trips to POS station
Higher tips: Studies show 3–5% higher tips with tableside
Better customer experience: Convenience and speed appreciated
Improved security: Card never leaves customer’s sight
Reduced server steps: 2–3 minutes saved per table
More tables served: Additional table per shift per server

Tableside features:

Split payments (by seat or amount)
Tip suggestions (15%, 18%, 20%, custom)
Digital signature capture
Receipt via email/SMS
Multi-tender transactions
Pre-authorization for bar tabs

Countertop POS Terminals

Fast, reliable payment processing for quick-service and counter operations.

Countertop solutions:

All-in-one touchscreen POS
Separate terminal + POS system
Customer-facing displays
Integrated receipt printers
Cash drawer connectivity
Kitchen display integration

Quick-service features:

One-tap payment processing
Contactless priority
Visual menu ordering
Customizable quick keys
Combo meal buttons
Modifier management
Split tender (part cash, part card)

Speed advantages:

Process 40–60 transactions per hour
2–3 second payment times
Line reduction during rush
Higher customer throughput
Less customer frustration
More revenue per hour

Mobile Payment Solutions

Accept payments anywhere in your restaurant or for off-site events.

Mobile options:

Tap to Pay on iPhone/Android:

Turn smartphone into terminal
No additional hardware needed
Accept contactless cards and wallets
Perfect for tableside or outdoor
Lowest equipment cost
Instant setup

Bluetooth card readers:

Portable card acceptance
Connects to smartphone/tablet
Chip, swipe, contactless
Battery-powered
Pocket-sized convenience
Backup payment option

Mobile POS tablets:

Full POS functionality
Wireless operation
Customer-facing display
Menu browsing for customers
Photos and descriptions
Upsell opportunities

Use cases:

Food trucks and mobile kitchens
Outdoor dining and patios
Catering and events
Farmers markets
Pop-up restaurants
Roaming servers in large venues
Curbside pickup payments

Online Ordering Payment Integration

Seamless payment processing for takeout, delivery, and online orders.

Online ordering features:

Website ordering:

Embedded payment forms
Save payment methods
Guest checkout option
Order scheduling
Delivery address verification
Tip selection for delivery
Special instructions

Third-party integration:

DoorDash integration
Uber Eats
Grubhub
Postmates
Seamless
Automatic menu sync
Unified reporting

Mobile app ordering:

Native payment integration
Apple Pay / Google Pay
Loyalty program connection
Push notifications
Order history
Reorder favorites
Saved addresses and payments

Online ordering benefits:

24/7 order acceptance
Reduced phone volume
Fewer order errors
Average order 20–30% higher online
Customer convenience
Increased capacity
Labor efficiency

QR Code Table Ordering & Payment

Contactless ordering and payment via customer smartphones.

QR code payment features:

How it works:

Customer scans QR code on table
Menu loads on their phone
Customer orders and pays
Order sent to kitchen
Food delivered to table
No server payment handling needed

QR code benefits:

Zero-contact ordering and payment
Reduced server workload
Faster table turns
Order accuracy improved
Upsell opportunities (menu browsing)
Labor cost reduction
Multilingual menu support

Implementation:

QR codes on table tents
Disposable/sanitizable QR stickers
Permanent table displays
Menu board QR codes
Receipt QR for feedback
Integration with POS

Bar and Tab Management

Specialized solutions for bar operations and open tabs.

Bar tab features:

Open tab management:

Swipe card to open tab
Pre-authorization hold ($20–50)
Add items throughout evening
Close tab at customer’s request
Automatic tab closure (3–4 hours)
Text notification for forgotten tabs

Tab security:

Card verification at open
ID check and name matching
Signature on file
Photo ID storage option
Walk-out protection
Disputed charge evidence

Bartender efficiency:

Quick item entry
One-tap common drinks
Happy hour pricing
Drink specials highlighting
Split tab functionality
Tab transfer between bartenders

Bar-specific reporting:

Sales by bartender
Most popular drinks
Peak hours analysis
Average tab size
Tab closure times
Walk-out frequency

Restaurant Payment Features

Tip Management and Adjustment

Comprehensive tip handling for all restaurant scenarios.

Tip entry options:

Suggested tip amounts:

15%, 18%, 20%, 25% buttons
Custom percentage entry
Dollar amount entry
“No tip” option
Configurable percentages
Calculated on pre-tax or post-tax (your choice)

Tip adjustment:

Add tip after initial authorization
24–72 hour adjustment window
Automatic tip capture
No customer re-authorization needed
Incremental authorization
Tip + transaction total processing

Tip on takeout:

Optional tipping for pickup
Suggested tip percentages
Delivery tip separate from driver
Online order tipping
Staff allocation (kitchen vs. front)

Tip pooling and distribution:

Pool management:

Automatic tip pooling calculations
Server/bartender/busser/host splits
Point-based distribution
Hours-worked calculations
Role-based percentages
Manager tip report generation

Tip payout:

Daily cash tip reports
Credit card tip payouts
Paycheck tip integration
Manual adjustment capability
Tip declaration for taxes
Historical tip data

Compliance:

FLSA compliance support
Tip credit tracking
Service charge vs. gratuity distinction
State-specific tip regulations
Reporting for wage/hour audits
Automatic record keeping

Split Payment Handling

Make dividing checks easy for servers and customers.

Split options:

Split by seat:

Assign items to seat numbers
Each guest pays their portion
Track by seat throughout meal
Print individual seat receipts
Multiple payment methods per table
Automatic even/uneven splits

Split evenly:

Divide total by number of payers
Equal amounts each guest
Automatic calculation
Round up/down options
Specify number of payments
Quick for large groups

Split by item:

Select items for each payment
Shared items divided
Appetizer splitting
Separate drink bills
Custom allocation
Visual item selection

Split by amount:

Guest specifies dollar amount
Multiple partial payments
Running total shown
Remaining balance tracked
Final payment collects balance
Flexible for groups

Contactless and Mobile Wallet Payments

Fast, secure, and preferred by customers post-pandemic.

Contactless acceptance:

NFC payments:

Tap credit/debit cards
Apple Pay
Google Pay
Samsung Pay
Contactless key fobs
Payment wearables (watches, rings)

Contactless benefits:

Fastest payment method: 1–2 seconds
No signature required: Under $250 typically
More hygienic: Zero contact with terminal
Preferred by customers: 67% prefer contactless
Increased throughput: Serve more customers
Reduced transaction time: 50% faster than chip

QR code payments:

Venmo QR codes
PayPal QR codes
Cryptocurrency QR (select locations)
Custom payment app QR
Table-specific QR codes
Tip-inclusive QR payments

Advanced Receipt Options

Modern receipt delivery that customers prefer.

Digital receipts:

Email receipts:

Customer enters email at payment
Professional branded receipt
PDF attachment option
Include promotional offers
Loyalty program enrollment
Feedback survey link
Order history for reference

SMS receipts:

Text receipt to mobile number
Short receipt summary
Link to full receipt online
High delivery rate (98%)
Immediate delivery
Easy expense reporting

No receipt option:

Customer declines receipt
Eco-friendly option
Faster checkout
Business copy retained
Transaction still tracked
Customer portal access

Receipt customization:

Restaurant logo and branding
Location address and hours
Website and social media
WiFi password
Loyalty program info
Return/feedback information
Promotional messages
Nutritional information link

Kitchen Display System (KDS) Integration

Payment processing integrated with kitchen workflow.

KDS integration benefits:

Order flow:

Payment confirmation triggers kitchen
Real-time order prioritization
Prep time tracking
Course timing (apps, entrees, desserts)
Expeditor coordination
Order completion alerts

Efficiency gains:

Eliminate paper tickets
Reduce order errors
Improve kitchen timing
Color-coded urgency
Order modifications highlighted
Dietary restrictions flagged

Reporting:

Ticket time averages
Station performance
Peak hour analysis
Menu item prep times
Bottleneck identification
Staff productivity metrics

Multi-Location Management

Centralized control for restaurant groups and franchises.

Multi-location features:

Centralized dashboard:

Real-time sales across locations
Comparative performance reports
Consolidated settlement
Unified menu management
Standardized pricing controls
Corporate oversight

Location-specific settings:

Individual POS configurations
Local tax rates
Regional menu variations
Staff permissions by location
Promotional schedules
Pricing adjustments

Franchise support:

Franchisee reporting access
Royalty calculation
Brand compliance monitoring
Standardized payment experience
Bulk equipment ordering
Corporate negotiated rates

Save Money on Restaurant Processing

Interchange-Plus Pricing for Restaurants

The most transparent and cost-effective pricing model.

How interchange-plus works:

Transparent pricing breakdown:

Interchange: Set by Visa/Mastercard (1.5–3.5%)
Assessment: Card brand fees (0.13–0.15%)
Processor markup: Coastal Pay’s fee (0.20–0.40% + $0.10)
Total cost: You see exact breakdown

Example transaction:

Guest check: $50.00
Interchange: $1.25 (2.50%)
Assessment: $0.08 (0.15%)
Processor markup: $0.20 (0.40% + $0.10)
Total cost: $1.53 (3.06%)

Why interchange-plus is best for restaurants:

Save 25–40% vs. flat-rate pricing
Transparent costs: See exactly what you pay
Benefit from debit cards: Lower interchange rates
Optimize card mix: Encourage debit over credit
No hidden fees: Clear monthly statements
Fair pricing: Only pay actual costs

Comparison to flat-rate pricing:

Pricing Model

Flat-Rate (Square, Toast)

Interchange-Plus (Coastal Pay)

Monthly Savings

Annual Savings

$50 Transaction

$1.45-1.75

$1.53

–

$100 Transaction

$2.90-3.50

$3.06

–

Monthly ($75K)

$1,950-2,625

$1,425-1,800

$525-825

$6,300-9,900

Restaurant Surcharging Programs

Offset 85-100% of credit card processing fees legally and compliantly.

How surcharging works for restaurants:

Program overview:

Credit card surcharge (3–4%) added at payment
Debit cards, cash = no surcharge
Customer sees surcharge before payment
Customer chooses: pay with credit (with surcharge) or use debit/cash
Offsets your processing costs

Example with surcharging:

Guest check: $50.00
Credit card selected
Surcharge (3.5%): $1.75
Total: $51.75
Your processing cost: ~$1.75
Net processing cost: $0

Restaurant-specific considerations:

Surcharge applies to:

Food and beverage
Tax amount
Tip/gratuity amount
Total card charge

Example with tip:

Food/beverage: $50.00
Tax (8%): $4.00
Subtotal: $54.00
Tip (20%): $10.80
Credit card subtotal: $64.80
Surcharge (3.5%): $2.27
Total charged: $67.07

Customer acceptance strategies:

Positioning:

“We offer multiple payment options”
“Save 3.5% by paying with debit or cash”
“Credit card surcharge helps us keep menu prices low”
Clear signage at entrance and checkout

Menu pricing:

Can lower base menu prices
Use surcharge savings to reduce food costs
Competitive pricing vs. competitors
Transparent pricing policy

Expected outcomes:

10–15% of customers switch to debit/cash
85–90% continue with credit cards
Overall processing costs reduced 85–95%
Net savings: $25,000–$75,000 annually (typical full-service)

Compliance for restaurants:

Entrance signage required
Table signage (optional but recommended)
Server notification recommended
Menu notation (optional)
Receipt shows surcharge separately
Applies to dine-in, takeout, delivery

Cash Discount Programs

Alternative to surcharging with simpler implementation.

How cash discount works:

Pricing structure:

Menu prices include processing costs (3.5% higher)
Credit card customers pay menu price
Cash/debit customers receive 3.5% discount
Net result: Same as surcharging

Example:

Menu price (includes processing): $51.75
Credit card payment: $51.75
Cash/debit payment: $50.00 (3.5% discount)
Result: Processing costs covered

Advantages for restaurants:

No card brand registration required
No 30-day waiting period
Simpler implementation
“Discount” framing vs. “surcharge”
Some customers prefer terminology
Flexibility in discount amount

Menu considerations:

All menu prices 3–4% higher
Clearly note “cash discount available”
Train servers to explain
Signage explains discount
Receipt shows discount line item

Restaurant Payment Processing Costs

Understanding Restaurant Processing Fees

Average processing costs by restaurant type:

Full-service dining:

Average ticket: $40–$75
Credit card usage: 70–80%
Average processing rate: 2.6–3.2%
Monthly cost (on $100K): $2,600–3,200
Annual cost: $31,200–38,400

Quick-service/Fast casual:

Average ticket: $12–$25
Credit card usage: 60–75%
Average processing rate: 2.8–3.3%
Monthly cost (on $75K): $2,100–2,475
Annual cost: $25,200–29,700

Fine dining:

Average ticket: $75–$150
Credit card usage: 85–95%
Average processing rate: 2.5–2.9%
Monthly cost (on $150K): $3,750–4,350
Annual cost: $45,000–52,200

Bars and nightclubs:

Average ticket: $25–$60
Credit card usage: 75–85%
Average processing rate: 2.7–3.2%
Monthly cost (on $80K): $2,160–2,560
Annual cost: $25,920–30,720

Fee components:

Interchange fees (largest cost):

Debit cards: 1.5–2.0%
Credit cards: 2.0–2.5%
Rewards cards: 2.5–3.5%
Corporate cards: 2.4–2.9%

Assessment fees:

Visa/Mastercard: 0.13–0.15%
Amex: 0.15–0.17%
Discover: 0.13%

Processor markup:

Flat-rate providers: 0.6–0.9%
Interchange-plus: 0.2–0.5% + $0.10
Coastal Pay: 0.3% + $0.10

Additional fees to watch:

Monthly statement fee: $0–15
PCI compliance fee: $0–10/month
Batch settlement fee: $0–5/month
Early termination fee: $0–395
Gateway fee: $0–25/month
Equipment rental: $0–75/month

Coastal Pay Restaurant Pricing

Transparent interchange-plus:

Interchange: Pass-through (exact cost)
Assessment: Pass-through (exact cost)
Processor markup: 0.30% + $0.10 per transaction
Monthly fee: $0 (no minimum, no statement fee)

Equipment options:

Purchase terminals: $200–600 one-time
Free terminal program: Available with volume
Integrated POS: Custom pricing
Mobile solutions: $0–50 one-time

Contract terms:

No long-term contracts required
Month-to-month available
No early termination fees
Cancel anytime (30-day notice)
No hidden fees or surprises

Cost savings examples:

Small pizzeria ($40K monthly):

Current processor (2.9% + $0.30): $1,280/month
Coastal Pay interchange-plus: $920/month
Monthly savings: $360
Annual savings: $4,320

Full-service restaurant ($150K monthly):

Current processor (2.9% + $0.25): $4,425/month
Coastal Pay interchange-plus: $3,150/month
Monthly savings: $1,275
Annual savings: $15,300

Fine dining ($250K monthly):

Current processor (2.8% + $0.20): $7,050/month
Coastal Pay with surcharging: $1,050/month
Monthly savings: $6,000
Annual savings: $72,000

Restaurant POS Integration

Toast POS Integration

Seamless payment processing with Toast restaurant POS.

Integration features:

Native payment processing
Unified reporting dashboard
Automatic menu sync
Tip management integration
Kitchen display connection
Online ordering integration
Gift card processing
Loyalty program support

Toast-specific benefits:

Single point of contact for support
Consolidated billing
Real-time sales reporting
Server performance tracking
Table management integration
Reservation system connection

Square for Restaurants Integration

Full integration with Square’s restaurant platform.

Integration features:

Tableside ordering and payment
Kitchen ticket management
Inventory tracking integration
Employee management
Time clock integration
Customer directory
Marketing tools connection
Analytics dashboard

Square advantages:

Simple setup and interface
All-in-one platform
Transparent pricing
No long-term contracts
Hardware options available

Clover Restaurant Integration

Flexible payment processing with Clover systems.

Integration features:

Clover Station Duo (dual screens)
Clover Flex (portable)
Clover Mini (countertop)
Custom app marketplace
Employee permissions
Detailed reporting
Inventory management
Customer engagement tools

Clover benefits:

Modular system design
Scalable for growth
Third-party app support
Cloud-based management
Real-time updates

Other Major POS Integrations

Flexible payment processing with Clover systems.

Lightspeed Restaurant (K-Series):

Advanced table management
Multi-location support
Extensive reporting
Menu engineering tools
Franchise capabilities

TouchBistro:

iPad-based POS
Offline functionality
Tableside ordering
Floor plan management
Staff scheduling

Aloha POS (NCR):

Enterprise-grade stability
Quick-service optimization
Drive-thru management
Self-service kiosk support
Multi-unit management

Revel Systems:

iPad POS platform
Scalable architecture
Advanced analytics
API integrations
24/7 support

Restaurant Industry Solutions by Concept

Full-Service Restaurants

Comprehensive payment solutions for table service dining.

Full-service needs:

Tableside payment terminals
Tip adjustment capabilities
Table management integration
Split payment handling
Open/close tab management
Server tip reporting

Recommended equipment:

Wireless handheld terminals (2–4 per server section)
Countertop terminal (host stand)
Mobile backup terminals
Kitchen printer integration
Customer-facing displays

Cost optimization:

Interchange-plus pricing saves 25–35%
Surcharging offsets 85–95% of costs
Encourage debit over credit
Cash discount programs
Optimize card mix

Average savings:

$100K monthly volume: $10,000–15,000/year
$250K monthly volume: $30,000–45,000/year
$500K monthly volume: $60,000–90,000/year

Quick-Service and Fast Casual

Speed-optimized payment processing for high-volume operations.

QSR/Fast casual needs:

Ultra-fast transaction processing (2–3 seconds)
Contactless prioritization
Self-service kiosk payment
Drive-thru payment systems
Mobile order pickup
Loyalty program integration

Recommended equipment:

Countertop all-in-one terminals
Customer-facing PIN pads
Self-service kiosks
Drive-thru payment windows
Mobile payment tablets (curbside)

Efficiency features:

One-tap payment completion
Contactless default
No signature required (under $250)
Receipt via email/SMS
Quick tender selection
Combo meal shortcuts

Throughput improvement:

40–50% faster than chip cards
Serve 5–10 more customers per hour
Reduced wait times
Higher customer satisfaction
Increased lunch rush capacity

Fine Dining

Premium payment experience for upscale restaurants.

Fine dining needs:

Discreet payment processing
High-ticket transaction support
Multiple payment tender handling
Business/corporate card acceptance
Private dining room flexibility
Sommelier wine tab management

High-ticket considerations:

Corporate card Level 2/3 data
Large tip management (20–25%+)
Split tender (multiple cards)
Business entertainment tracking
Authentication for $500+ tickets
Fraud prevention measures

Client experience:

Discreet payment presentation
Premium device aesthetics
Digital receipt options
Business expense integration
VIP customer recognition
Personalized service

Bars and Nightclubs

Fast, secure payment processing for beverage-focused venues.

Bar/nightclub needs:

Quick drink ordering
Open tab management
High-volume peak hours
Age verification integration
Bartender tip tracking
Security deposit holds

Recommended equipment:

Countertop terminals (multiple per bar)
Portable terminals (bottle service)
Mobile devices (roaming servers)
Self-service beer wall integration
Event ticket processing

Bar-specific features:

Rapid transaction processing
One-tap common drinks
Happy hour automatic pricing
Tab transfer between bartenders
Customer ID photo storage
Walk-out protection

Peak hour performance:

Process 60–80 drinks per hour
Multiple simultaneous transactions
Queue management
Pre-authorization reduces wait
Contactless tap-and-go
Minimal customer friction

Pizza Delivery and Takeout

Specialized solutions for delivery and carryout operations.

Delivery/takeout needs:

Online ordering integration
Phone order card processing
Driver tip management
Delivery zone verification
Contactless delivery payment
Curbside pickup processing

Delivery-specific features:

Address verification
Delivery fee calculation
Driver tip allocation
Mileage tracking integration
Contactless delivery options
Photo confirmation

Customer convenience:

Save payment methods
Reorder favorites
Scheduled delivery
Real-time tracking
Tip adjustment post-delivery
Digital receipt delivery

Food Trucks and Mobile Kitchens

Portable payment processing for mobile operations.

Food truck needs:

Fully mobile payment acceptance
No WiFi dependency (cellular)
Weather-resistant equipment
Battery-powered operation
Space-efficient setup
Quick location changes

Recommended equipment:

Tap to Pay on iPhone/Android ($0 hardware)
Bluetooth mobile readers ($50–100)
Portable countertop terminals
Weatherproof cases
Backup battery packs
Mobile receipt printers (optional)

Mobile advantages:

Accept payments anywhere
No fixed location requirement
Events and festivals
Farmers markets
Catering operations
Quick setup/teardown

Cost efficiency:

No landline/internet fees
Minimal equipment investment
Portable between locations
Scale for multiple trucks
Lower overhead than brick-and-mortar

Catering and Special Events

Flexible payment processing for off-site and event catering.

Catering needs:

Mobile payment acceptance
Large ticket transactions
Deposit and balance billing
Multi-location capability
Event-specific reporting
Corporate invoicing

Payment scenarios:

Event deposits (50% upfront)
Final payment on-site
Corporate invoicing (NET terms)
Split payments (personal vs. corporate)
Tip handling for catering staff
Equipment rental charges

Event payment features:

Pre-event deposits
Day-of payment processing
Bar tab management
Staff gratuity handling
Multiple payment acceptance
Itemized billing

Restaurant Payment Compliance and Security

PCI Compliance for Restaurants

Essential security standards for card payment acceptance.

PCI DSS requirements:

Level 1 certified payment processing
Encrypted card data transmission
Secure payment terminals
No storage of sensitive card data
Regular security updates
Annual compliance validation

Coastal Pay ensures compliance:

PCI-compliant terminals provided
Automatic security updates
Encrypted payment processing
Tokenization (no card storage)
Compliance support and guidance
No additional PCI fees

Restaurant-specific considerations:

Multiple terminal security
Server device access controls
Manager authorization levels
Network security (WiFi)
Physical terminal security
Staff training requirements

Chargeback Prevention and Management

Protect your restaurant from fraudulent disputes.

Common restaurant chargebacks:

Customer disputes order quality
“Never received” delivery orders
Tip amount disputes
Duplicate charges
Unauthorized family member use
Price disagreement

Prevention strategies:

For dine-in:

Clear menu pricing
Itemized receipts
Customer signature (over $25)
Save signed receipts
Server training on disputes
Manager verification for large tips

For delivery:

Photo confirmation of delivery
Customer signature capture
GPS delivery verification
Clear delivery policies
Contact customer before leaving
Save all order documentation

For online orders:

Require CVV verification
Use AVS (address verification)
Velocity checks (multiple orders)
Delivery address confirmation
Order confirmation emails
Clear refund policies

Chargeback management:

Immediate notification of disputes
Evidence submission support
Representment assistance
Documentation guidance
Dispute tracking
Win rate optimization

Data Security and Breach Protection

Protect customer payment data and your business.

Security measures:

Terminal security:

Encrypted card readers
Tamper-resistant hardware
Secure PIN entry
No local data storage
Remote terminal management
Automatic security patches

Network security:

Isolated payment network
Firewall protection
Secure WiFi configuration
VPN for remote management
Regular security scans
Vulnerability assessments

Staff security:

Unique user logins
Role-based permissions
Activity logging
Suspicious activity alerts
Training on phishing
Social engineering awareness

Breach response:

24/7 security monitoring
Immediate breach notification
Forensic investigation support
Customer notification assistance
Credit monitoring offerings
Legal and PR support

Getting Started with Restaurant Payment Processing

How to Switch Processors

Make the transition smooth and painless.

Step 1: Analysis (Week 1)

Review current processing statements
Calculate current effective rate
Identify all fees and charges
Determine monthly and annual costs
Calculate potential savings
Review current contract terms and obligations

Step 2: Consultation (Week 1)

Schedule call with Coastal Pay
Discuss restaurant concept and processing volume
Review POS system compatibility
Determine equipment and hardware needs
Receive a custom pricing quote
Review contract terms and conditions

Step 3: Application (Week 1-2)

Complete merchant application
Provide required business documentation
Submit tax identification information
Complete bank account verification
Background check processing
Approval typically completed within 24–48 hours

Step 4: Integration Planning (Week 2-3)

Schedule installation date
Coordinate with POS provider
Plan staff training sessions
Configure and test transactions
Run a parallel processing period
Prepare backup and rollback plan

Step 5: Equipment Setup (Week 3-4)

Install new terminals
Configure POS integration
Test all payment types
Verify receipt printing
Train staff on the new system
Test failure and fallback scenarios

Step 6: Go Live (Week 4)

Activate new processing
Monitor first transactions
Provide staff support on-site
Address any issues immediately
Deactivate old processor
Celebrate cost savings

Step 7: Optimization (Ongoing)

Review monthly statements
Track processing savings
Optimize payment mix
Gather staff feedback
Monitor customer experience
Continuous improvement

Equipment Options and Costs

Countertop terminals:

Purchase: $299–$599
Free with processing volume: Available
Lease: $35–$75/month
Recommendation: Purchase outright or use free terminal program

Wireless handheld terminals:

Purchase: $399–$699
Free with processing volume: Available
Lease: $45–$95/month
Recommendation: Purchase for 2+ year use

All-in-one POS systems:

Purchase: $1,200–$2,500
Subscription model: $50–$150/month + hardware
Custom quote: Based on features needed
Recommendation: Depends on concept and size

Mobile solutions:

Tap to Pay (iPhone/Android): $0
Bluetooth readers: $49–$99
Mobile card readers: $29–$79
Recommendation: Tap to Pay for lowest cost

Accessories:

Receipt paper: $15–25 per case
Terminal stands: $30–$80
Protective cases: $20–$50
Backup batteries: $40–$100
Printer ribbons/ink: Varies

Staff Training and Support

Initial training:

On-site training session (2–3 hours)
Operation manual provided
Video training library
Quick reference cards
Manager certification
Ongoing refresher training

Training topics:

Basic transaction processing
Tip entry and adjustment
Split payment handling
Refund and void procedures
Troubleshooting common issues
Security and fraud prevention
Chargeback prevention
Customer service best practices

Ongoing support:

24/7 phone support
Live chat support
Email ticket system
Online knowledge base
Video tutorials
Dedicated account manager
On-site support visits (if needed)
Replacement equipment expedited

Restaurant Payment Processing FAQ

What's the average credit card processing fee for restaurants?

Restaurants typically pay 2.5-3.5% per credit card transaction with interchange-plus pricing, or 2.9-3.5% with flat-rate pricing from providers like Square or Toast. Your exact rate depends on your card mix (debit vs. credit, rewards cards), average ticket size, transaction volume, and pricing model. With Coastal Pay’s transparent interchange-plus pricing at 0.30% + $0.10 above true cost, most restaurants save 25-40% compared to flat-rate providers. For example, a restaurant processing $100,000 monthly might pay $2,900-$3,500 with flat-rate pricing, but only $2,100-$2,600 with interchange-plus—saving $800-$900 monthly or $9,600-$10,800 annually

How can restaurants reduce credit card processing fees?

Restaurants can reduce processing costs through several strategies: (1) Switch to interchange-plus pricing to save 25-40% vs. flat-rate, (2) Implement surcharging programs to offset 85-100% of fees legally, (3) Encourage debit over credit (lower interchange rates), (4) Use cash discount programs, (5) Optimize card acceptance (ensure debit runs as debit, not credit), (6) Negotiate better processor rates with volume, (7) Eliminate unnecessary fees (statement fees, PCI fees, gateway fees), and (8) Accept contactless payments for faster processing. A typical restaurant processing $150,000 monthly can reduce costs from $4,350/month to under $1,000/month through optimization—saving over $40,000 annually.

What is restaurant surcharging and is it legal?

Restaurant surcharging is the practice of adding a small fee (typically 3-4%) to credit card transactions to offset processing costs, while debit and cash payments have no surcharge. It’s legal in all 50 states when implemented correctly with proper disclosure, signage, and card brand registration. The surcharge applies to the entire credit card charge including food, tax, and tips. Customers see the surcharge before payment and can choose to pay with debit or cash to avoid it. Most restaurants find 10-15% of customers switch to debit/cash while 85-90% continue with credit cards, resulting in 85-95% reduction in net processing costs—saving $25,000-$75,000+ annually for typical full-service restaurants.

Can I add credit card fees to customers in my restaurant?

Yes, through compliant surcharging or cash discount programs. With surcharging, you add a 3-4% fee to credit card transactions (not debit), clearly disclosed before payment via signage and receipts. With cash discounting, you set menu prices 3-4% higher and offer discounts for cash/debit payments. Both approaches are legal nationwide when implemented correctly. Requirements include entrance signage, checkout disclosure, separate receipt line items, card brand registration (for surcharging), and staff training. Coastal Pay handles all compliance requirements and ensures you follow federal and state regulations. Most restaurants successfully implement these programs with high customer acceptance when explained as offsetting processing costs while keeping menu prices competitive.

What payment methods should restaurants accept?

Modern restaurants should accept all major payment methods: credit cards (Visa, Mastercard, Amex, Discover), debit cards (PIN and signature), contactless payments (tap cards, Apple Pay, Google Pay), mobile wallets, QR code payments, and cash. The ideal mix is 70-80% cards (mix of credit/debit), 10-15% contactless/mobile wallets, 5-10% cash, and 5-10% alternative methods. Contactless payments are particularly important post-pandemic—67% of customers prefer contactless, and these transactions are 50% faster than chip cards. For online ordering, add ACH/bank transfers for large catering orders (lower 1% fee vs. 2.5-3.5% cards). Gift cards and loyalty program integration are valuable add-ons that drive repeat business.

How long does it take to get paid from restaurant credit card sales?

Restaurant credit card sales typically settle within 1-2 business days. Transactions processed Monday are deposited to your bank account Wednesday morning. This is significantly faster than checks (5-10 days) or invoicing (30-45 days). For immediate cash flow needs, next-day funding is available with qualified merchants. Settlement times are the same regardless of payment method—credit cards, debit cards, and contactless all settle within 1-2 days. Tips are included in settlements (though some restaurants pay cash tips daily and wait for credit tips to settle). ACH/bank transfers take 3-4 business days. Understanding settlement timing helps with cash flow planning—Monday-Wednesday sales fund weekend expenses, for example.

Do I need special equipment for tableside payment processing?

Yes, tableside payment requires wireless handheld terminals that process payments at the table without returning to a fixed POS station. These devices are portable, battery-powered, accept chip cards and contactless payments, have built-in receipt printers, and connect via WiFi or cellular. Benefits include faster table turns (2-3 minutes saved per table), higher tips (3-5% increase when customers see suggested amounts on terminal), improved security (card never leaves customer’s sight), and better customer experience. Costs are $400-$700 per terminal, or free with processing volume. Most full-service restaurants need 2-4 terminals depending on size. Coastal Pay provides wireless terminals with POS integration, long battery life, and 24/7 support.

How do restaurant tips work with credit card processing?

Tips are added after the initial payment authorization in two ways: (1) Customer writes tip on receipt and you adjust the charge within 24-72 hours (most common for full-service), or (2) Customer enters tip on payment terminal before authorizing (common for quick-service and countertop). The total charge (meal + tip) settles together within 1-2 days. Tip adjustment must happen within your processor’s time window (usually 24-72 hours) to avoid authorization decline. The surcharge (if applicable) applies to the total including tips. Modern POS systems automatically handle tip pooling, distribution calculations, and tax reporting. Servers receive credit card tips in their paycheck or as separate tip payout. Track tips carefully for payroll, tax reporting, and tip credit compliance under the Fair Labor Standards Act.

What's the best POS system for restaurants?

The best POS depends on your restaurant concept: Toast is ideal for full-service restaurants with tableside ordering, kitchen management, and online ordering integration. Square for Restaurants works well for small cafes and quick-service with simple, affordable pricing. Clover offers flexibility for various concepts with modular hardware and app marketplace. TouchBistro excels for iPad-based systems with offline capability. Lightspeed serves multi-location and franchise operations. Aloha (NCR) is enterprise-grade for large operations and drive-thru. Consider your needs: table management, inventory tracking, employee scheduling, online ordering, reporting depth, scalability, and budget. Coastal Pay integrates with all major restaurant POS systems, so you can choose the POS that fits your operations while getting best-in-class payment processing rates.

Can I accept contactless payments at my restaurant ?

Yes, and you should—contactless payments (tap cards, Apple Pay, Google Pay) are now essential for restaurants. 67% of customers prefer contactless, these transactions are 50% faster than chip cards (1-2 seconds vs. 5-7 seconds), no signature is required under $250, they’re more hygienic (zero physical contact), and they increase throughput during busy periods. All Coastal Pay terminals accept contactless payments standard. To enable contactless, you need NFC-enabled terminals (included in modern equipment), proper terminal programming (we handle this), trained staff (simple—just instruct “tap your card”), and contactless-accepted signage. For tableside service, wireless handhelds with NFC are available. Contactless is particularly valuable for quick-service restaurants where speed is critical—you can serve 5-10 more customers per hour during rush periods.

How do I handle split payments in my restaurant?

Modern restaurant POS systems handle split payments multiple ways: (1) Split by seat—assign items to seat numbers, each guest pays their items; (2) Split evenly—divide total by number of payers equally; (3) Split by item—select which items each person pays for; (4) Split by amount—guests specify dollar amounts to pay. The POS tracks running total and remaining balance, allowing multiple payment methods (some pay credit, others debit or cash). Each payment gets a separate receipt if desired. Train servers on your POS split payment workflow—this is a common customer request that should be handled smoothly. Large parties often split checks, so efficient split payment processing is essential for full-service restaurants. Most modern systems make this a 30-second process per split.

What happens if my restaurant's payment processing goes down?

Payment processing downtime is rare but can happen due to internet outages, equipment failure, POS crashes, or processor issues. Have a backup plan: (1) Knuckle busters (manual imprinters)—process cards manually and batch them later, (2) Mobile backup—use Tap to Pay on iPhone or mobile reader with cellular connection, (3) Write down cards—record card numbers manually (only in emergencies, with customer permission, and process immediately when systems return), (4) Cash only—accept cash during outage with ATM directions posted. Coastal Pay provides 24/7 emergency support, replacement equipment expedited shipping (next-day in most areas), and offline mode on some terminals (processes when reconnected). Most outages resolve within 15-30 minutes. Test your backup plan periodically so staff knows exactly what to do.

Do restaurants pay higher credit card processing fees?

Restaurants don’t inherently pay higher fees than other businesses—processing costs are based on card type (debit vs. credit), card brand, and your pricing model, not your industry. However, restaurants often pay MORE than necessary because: (1) they use expensive flat-rate pricing (2.9-3.5%) instead of interchange-plus, (2) high credit card usage (70-80% of transactions) means fees add up, (3) tips increase transaction sizes and fees, (4) they don’t optimize for debit cards, and (5) they accept premium rewards cards (higher interchange). The solution is interchange-plus pricing which gives you the lowest possible rates regardless of industry. With Coastal Pay, restaurants pay 0.30% + $0.10 above true cost—typically 25-40% less than flat-rate competitors. Your industry doesn’t determine your rates; your processor and pricing model do.

How does online ordering payment processing work?

Online ordering payment processing integrates with your restaurant’s website or third-party platforms (DoorDash, Uber Eats, Grubhub). Customers enter payment information on the ordering platform, the payment is authorized immediately, and funds settle in 1-2 days. Your POS receives the order details and payment confirmation, the kitchen prepares the order, and the payment is already captured. For direct online ordering (your own website), you need: payment gateway integration (Coastal Pay provides this), SSL certificate (secure website), shopping cart functionality, mobile-responsive design, and saved payment options for repeat customers. Online orders typically have 20-30% higher average tickets than phone orders because customers browse menus more thoroughly. Processing fees are the same as in-person (2.5-3.5% for cards), but you avoid phone staff time. Many restaurants save 5-10% on labor by shifting to online ordering.

Should I accept American Express in my restaurant?

Yes, in most cases restaurants should accept American Express. While Amex historically had higher fees (3-4% vs. 2.5-3% for Visa/Mastercard), modern processing with interchange-plus pricing makes the difference minimal (typically 0.3-0.5% higher). Benefits of accepting Amex: affluent cardholders (higher average tickets), business travelers frequently use Amex (corporate expense accounts), strong in fine dining and upscale concepts, 25-30% of customers prefer Amex, and declining customers hurts sales more than saving fees. Many restaurants find Amex customers have 20-40% higher average tickets, which more than offsets the slightly higher processing fee. With Coastal Pay’s transparent pricing, you see exact Amex costs and can make informed decisions. Most restaurants find accepting all major cards (Visa, Mastercard, Amex, Discover) maximizes revenue despite slightly higher fees on some cards.

Can I pass credit card fees to customers at my restaurant?

Yes, through surcharging or cash discount programs. Surcharging: Add 3-4% to credit card transactions (must register with card brands 30 days in advance, post clear signage, show surcharge on receipts separately, and ensure customer sees surcharge before paying). Cash discounting: Set menu prices 3-4% higher and give discounts for cash/debit (simpler implementation, no registration, called “discount” not “surcharge”). Both are legal nationwide when compliant. Most restaurants have high customer acceptance—studies show 85-90% continue using credit cards despite surcharge, while 10-15% switch to debit/cash. Net result: 85-95% reduction in processing costs. Example: Restaurant with $150K monthly credit card volume saves $30,000-$40,000 annually through surcharging. Coastal Pay handles all compliance requirements including signage, registration, and POS configuration.

What credit card processing is best for food trucks?

Food trucks need mobile, reliable processing with no fixed internet dependency. Best solutions: (1) Tap to Pay on iPhone/Android—turn your phone into a terminal with no additional hardware ($0 cost), accepts contactless cards and mobile wallets, works on cellular data; (2) Bluetooth mobile readers—small card readers that connect to smartphone/tablet ($50-100), accept chip and contactless; (3) Cellular terminals—standalone terminals with built-in cellular connection ($200-400), work anywhere with cell coverage. Key requirements: battery-powered operation, weather-resistant, space-efficient, fast transaction processing (long lines at food trucks), and contactless priority. Avoid: WiFi-dependent systems (unreliable at events/markets), landline-based terminals, bulky equipment. Processing fees are same as brick-and-mortar. Coastal Pay provides mobile solutions perfect for food trucks, farmers markets, festivals, and events.

How much can restaurants save by switching credit card processors?

Most restaurants save 25-40% on processing costs by switching from flat-rate pricing to Coastal Pay’s interchange-plus model. Specific savings examples: Small restaurant ($50K monthly volume) pays $1,450/month with flat-rate, $1,050/month with Coastal Pay = $400/month saved = $4,800/year. Medium restaurant ($150K monthly volume) pays $4,350/month with flat-rate, $3,150/month with Coastal Pay = $1,200/month saved = $14,400/year. Large restaurant ($300K monthly volume) pays $8,700/month with flat-rate, $6,300/month with Coastal Pay = $2,400/month saved = $28,800/year. Add surcharging and savings increase to 85-95% of total processing costs. Most restaurants recover switching costs (if any) within the first month and save thousands to tens of thousands annually thereafter. Request a free rate analysis—we’ll review your current statement and show exact savings potential before you commit.

Do I need a merchant account for my restaurant?

Yes, restaurants need a merchant account to accept credit and debit card payments. A merchant account is a business bank account that holds funds from card transactions temporarily before transferring them to your regular bank account. Two options: (1) Dedicated merchant account (traditional)—you apply for a specific merchant account with an acquiring bank, typically lower rates and more control, required for high-volume restaurants, and better for long-term operations; (2) Payment aggregator (Square, Toast Pay)—you use a shared merchant account under the provider’s master account, faster approval but higher rates, and good for low-volume or new restaurants. Coastal Pay sets up dedicated merchant accounts for restaurants with competitive approval rates, typically 24-48 hour approval, lower rates than aggregators, and better long-term value. Your merchant account is essential for receiving card payments, so choosing the right provider impacts your costs for years.

What's the difference between a payment processor and a POS system?

Payment processor (like Coastal Pay) handles the actual card transaction—authorization, settlement, and fund transfer to your bank. POS system (like Toast, Square) manages your restaurant operations—menu, orders, inventory, staff, tables, and customer experience. Many POS systems bundle payment processing (convenience but often higher fees), while others integrate with independent processors (typically lower costs, more flexibility). Advantages of separating POS from processor: negotiate better processing rates (save 25-40%), choose best-of-breed solutions for each function, avoid being locked into expensive bundled pricing, maintain POS if you switch processors, and more flexibility. Coastal Pay integrates with all major restaurant POS systems so you get the best POS for operations and best rates for processing. Compare bundled vs. separate costs—most restaurants save significantly with specialized processor.

Get Started with Restaurant Payment Processing

See How Much Your Restaurant Can Save

Stop overpaying for credit card processing. Get a free rate analysis and discover how much you could save with Coastal Pay’s restaurant-optimized payment solutions.

What happens next:

Free rate analysis – Upload your current processing statement
Custom quote – See your exact savings with our pricing
POS integration – Confirm compatibility with your system
Implementation plan – Simple, smooth transition (no downtime)
Start saving – Typically save $500–$5,000+ monthly

Average restaurant savings:

Pizza/Quick-Service: $4,000–$8,000/year
Casual Dining: $12,000–$25,000/year
Full-Service: $15,000–$40,000/year
Fine Dining: $25,000–$75,000/year
Multi-Location: $50,000–$200,000+/year

Questions? Talk to a Restaurant Payment Specialist

Our team understands restaurant operations and can answer questions about processing costs, POS integration, tableside terminals, tip management, and surcharging programs.

No sales pressure. No obligation. Just expert restaurant payment guidance.

Phone: 888 266 1715 ((Mon-Fri 8am-8pm ET, Sat 9am-5pm ET))
Email: restaurants@coastalpay.com
Live Chat: Available on our website
Free Rate Analysis: Upload statement instantly
Video Demo: See our restaurant solutions (3 minutes)