What Is a Surcharge and How Does It Work?
Running a restaurant is tough, and making money can be even harder. Recently published data shows that 34% of all new Pass The Fee accounts are restaurants¹. This encourages customers to use cash or debit cards instead of credit cards by adding a small 2.4% fee to credit card payments. Let’s look at why this new payment method is so popular, how it works, and what it means for your restaurant.
How Pass-The-Fee Technology Saves Money
Restaurants don’t make a lot of profit on each sale, and credit card fees—which can be 1.5% to 3% per transaction—make it even harder to stay in business. Pass-the-fee technology helps by passing those fees to customers who pay with credit cards.
Here’s how it helps restaurants:
- Save Money: Instead of paying credit card fees, restaurants can use that money to improve their business.
- Encourage Cash or Debit: Since there’s no fee for these payments, customers may choose these options instead.
- Stay Competitive: Restaurants can keep menu prices the same without losing money to credit card fees.
How Customers Feel About It
Pass-the-fee technology is new for many people, and customers may react differently. Here are some important things to know:
- Be Honest About It: Customers are okay with a fee if they understand why it’s there.
- Most Customers Don’t Mind: Research shows that people don’t usually get upset about small fees if they know the restaurant isn’t making extra profit from it.
- It’s About Choices: Adding the fee only to credit cards makes people think about using cash or debit cards instead. These options don’t cost them extra.
As more restaurants start using this system, customers are becoming more familiar with it and are generally understanding.
How Rescue Payments Makes It Easy
Switching to pass-the-fee technology doesn’t have to be hard. Rescue Payments makes it simple. Here’s why:
- Easy to Set Up: Our terminals work with your current system, so there’s no need for expensive new equipment.
- Simple for Staff: Your team will learn how to use the system quickly, so it won’t slow things down.
- Clear for Customers: Our terminals show the fee amount clearly, so customers know exactly what they’re paying.
- Help Anytime: Our team is here 24/7 if you have questions or need support.
We’ve designed our system to make life easier for you and your staff, so you can focus on running your restaurant.
Why Restaurants Are Adopting This System
Restaurants deal with a lot of small transactions every day, and the cost of credit card fees adds up fast. Pass-the-fee technology is helping restaurants take control of their costs while staying competitive. By using this system, restaurants can boost their profits and give customers more payment choices.
Ready to Save Money?
If you’re ready to join the growing number of restaurants using Pass-The-Fee technology, Rescue Payments can help. Our easy-to-use solution makes it simple for your business, your staff, and your customers. Contact us today to find out how we can help you save money on credit card fees and keep your diners happy.
¹ Figure based on new account openings with Pass The Fee enabled in Canada in 2024
