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Not Such a Great Deal for a Restaurant
May 9th, 2011
I recently met with a local restaurant here in Denver. They had been with a company for years and I had a rep come in and said they had a better way to price the account called Cost Plus or Interchange Plus pricing. As I have on my site this is the way to process cards, paying above cost. This restaurant owner also heard it was a better way to process and so he went with it.
However, although he received “cost plus” pricing, it ended up he was paying .85% (almost a full percent) above cost!! This was way too high for a small merchant, let alone an established restaurant who has processed credit cards for years.
Make sure you are not only processing at cost plus but you are also paying only tenths above cost, not a full percent!