How to Save on Credit Card Processing Fees

The past few years have been difficult for restaurants across the country as they have found themselves struggling to adjust to a new normal. Among the many pressures are rapidly rising credit card processing fees. Despite a recent settlement where the two largest card brands agreed to a modest cap of interchange fees for five years, processing fees show no signs of decreasing. The settlement does nothing to prevent processors from turning around and adding fees or raising rates on other line items. 

So, what does that mean for restaurants trying to cut costs? While some have decided to go cash-only, others have turned to surcharges or cash discounts to accommodate card-bearing customers. If you are considering the latter, here’s what you should know about implementing a surcharge or cash discount program.

1. The difference between surcharging and cash discountingSimply put, surcharging is a service fee added to the bill, whereas cash discounting offers customers a lower price…