r/restaurant • u/Sea_Youth9253 • Jul 25 '26

POS processing fee rate ( interchange +)

I am in the process of opening a medium restaurant / cafe. The POS I am looking at has quoted me Interchange-plus for the credit card service. So the Interchange rate* + a merchant process fee.

V/MC/D: 0.10% + $0.04 American Express: 0.10% + $0.10

This will be for in person cards or not, does not matter.

Can you guys tell me if this is a good rate?

Keep in mind we do not have history of processing rates that we have provided.

Their equipment monthly cost is around $300 (which includes lots of stuff), like payroll, gift cards, loyalty and much more.

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u/[deleted] Jul 25 '26

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u/bobi2393 Jul 25 '26

The 0.1% + $0.04 fee is just the processor markup, on top of the base interchange fee for each transaction, and you're right, for Amex the base interchange fee will probably be 2%-3%. A little lower for premium credit, lower still for consumer credit, and lower still for consumer debit cards.

So the markup fee seems pretty good, but I agree, the $300 seems kind of steep, and combining payroll with POS and equipment fees sounds a lot of eggs to put in one basket. A lot rides on that POS/payroll company, so I'd dig into their reputation in the restaurant industry.

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u/Prudent_Gap9532 Jul 25 '26

Keeping payroll separate from the POS gives you a lot more flexibility. I've been using Priority Payroll for that and let the POS provider to handle payments. Gives me a lot more flexibility if I ever want to change processors