How Restaurants Can Offset Their Credit Card Fees
The world is getting back on its feet. However, the cost to get it back together is quite high. Inflation has made it difficult for people to enjoy the same things they used to enjoy. Extras, such as going out to eat, may soon become rare for many people.
The restaurant industry continues to take hits of the pandemic and the aftermath. Many restaurants lost business because of the pandemic Many never recovered. Those that did are now experiencing inflation where the costs of the goods used to create their invaluable service have tripled in price (if not gone up even more). As a result, restaurants have been forced to raise their prices. Yet, they still must be affordable enough for people to continue to use what little discretionary income they have left to eat out.
One way in which restaurants can save some money and selectively increase costs if by charging a fee to customers who choose to use a credit card. As much as it may sound off-putting, it is becoming common in many restaurants to do so. However, businesses owners who choose to recoup their credit card fees must follow certain rules to comply with the laws in New Jersey and surrounding states.
The Benefits to Recouping Credit Card Fees
Credit card fees can take 3.5% or more of each diner’s final payment. That money adds up and can eat away a large chunk of your profits needed to keep your restaurant running. By charging clients using a credit card these fees. you are able to continue to run your restaurant without raising the prices too high for all diners.
Additionally, you can entice clients to use cash whenever possible. When clients use cash, you have less overhead. For instance, you do not have to pay for the privilege or convenience of accepting credit cards. Customers who want the convenience of the ability to use a credit card will pay for that convenience. Meanwhile your customers who do not need or want that convenience can keep their bill a little lower and possibly even eat out more often.
How Can You Recoup Credit Card Fees Under the Law
There are specific rules you must follow to recoup credit card fees. Each state has their own set of laws. More over, in some states, businesses cannot charge extra for those using a credit card. However, in New Jersey, you must follow two basic rules to recoup your credit card fees from customers.
- You must clearly post a sign and notice that you will charge a specific fee for credit card transactions.
- You can only charge the exact percentage of the credit card fees or less. You may not charge more than the credit card processing fee.
As long as you follow these rules, your restaurant can recoup your credit card processing fees while providing a convenience and service to your clientele.