Coffee Shop Credit Card Processing
In the ever-changing food and beverage industry, coffee shop owners must focus on convenience to keep their customers happy. Accepting credit card payments has now become essential for coffee shops. Most customers, especially youngsters, always prefer to pay with their credit cards or mobile wallets like Apple Pay or Google Pay. It is a well-known fact that the use of cash is declining and on the other hand the use of digital payments is increasing rapidly. Customers generally spend more money when they use credit cards in comparison to cash. When a coffee shop offers multiple payment options to the customer it offers convenience and also increases the chance of making bigger sales. Credit card processing-ready coffee shops are in a better position to attract loyal customers more than others. No quick-service restaurant or coffee shop can ignore the importance of credit card processing.
Overview of How Credit Card Processing Works at a Coffee Shop
For a coffee shop owner who is starting to use credit card processing, it may seem a complex process; however, in reality, it is a lot simpler. Credit card transaction processing for coffee shops happens within a second; however, it involves various steps.
The first step is the initiation of the payment, where the customer hands over the card to the merchant and then the merchant swipes the card over the terminal. Sometimes the customer may be asked to submit a personal identification number. If the card is NFC-enabled, the customer may also tap the card on the terminal for transaction processing. In this initial step, the payment gateway collects the credit card information and sends the details to the payment processor for authorization.
The information is encrypted and forwarded to the bank which has issued the credit card to the customer. The purpose of forwarding this information is to get a confirmation from the issuing bank if the customer has enough line of credit on the credit card. Based on the response of the card issuer, the transaction is either approved or declined.
If the transaction is approved, then the merchant processor sends the confirmation to the merchant, and this is displayed on the coffee shop’s payment terminal. The customer gets the receipt of the transaction. In case the transaction is not approved by the card issuer, then on the terminal a transaction decline error code will be displayed.
At the end of every business day, the coffee shop batches all approved transactions. Based on this report, the merchant processor deposits the amount to the coffee shop’s bank account after deducting the processing fees within 1 to 2 business days.
Throughout the process, the merchant processor and the payment gateway company ensure that the customer’s credit card information is secure by using various technologies such as encryption and tokenization.
Benefits of Coffee Shop Credit Card Processing
Using credit card processing for a coffee shop business brings in a wide range of benefits; these can have significant short-term and long-term advantages. Let’s look at some of these key benefits.
Increased Customer Comfort: Credit card processing at coffee shops makes it extremely easy for customers to make payments whether they are buying a single coffee or placing a large group order. Contactless payments and mobile wallet transactions enhance the customer experience even further, especially for the tech-savvy and busy customers.
Boosted Revenue: It has been observed that coffee shops that accept digital payments see higher average order values. Customers generally spend more when they pay by using credit cards or debit cards as they are not restricted by the available cash in hand. With credit card transactions, customers can make impulsive purchases of add-ons like pastries or upsizing drinks, which increases the total bill. Growth-oriented coffee shops cater to the needs of all types of customers, including those that prefer cash and those that prefer cards. This strategy helps the coffee shop attract a wide range of customers.
Improved Cash Flow: Most coffee shops work on a very small margin of profit, and that is why it becomes difficult for these businesses to add human resources to handle, count, and deposit cash. With digital payment options like credit card processing, coffee shops do not have to worry about hiring those resources. Once the credit card transaction is done on the coffee shop’s payment terminal, everything else happens automatically. Digital payment systems used by coffee shops provide clear financial records, which makes bookkeeping extremely easy for tax filing purposes.
Better Business Reputation: A coffee shop that allows customers to make payments using modern payment methods is generally considered professional and customer-centric. This leads to word-of-mouth referrals and increases repeat business. An association with a good merchant service provider that has experience in working with a wide range of coffee shops can help your business stay ready for the future.
Key Features of Credit Card Processing Terminals for Coffee Shops
Point of Sale (POS) Systems: One of the most important features of credit card processing terminals for coffee shops is the integration with the point-of-sale system. For a coffee shop, a point-of-sale system plays a significant role. It is a combination of hardware and software that allows the coffee shop owner to keep a close watch on inventory, sales, and various other business functions. Credit card processing terminals can easily connect to popular coffee shop POS systems. If your coffee shop does not use any point-of-sale system and is looking for a cheaper option, then we can offer you credit card terminals with built-in POS software.
Mobile Payment Options: Traditionally, magnetic stripe cards were the only payment instruments used on credit card terminals. However, now customers use a variety of payment instruments, including contactless methods. With payment terminals, your customers can easily make payments by just tapping the cards or using their mobile wallets like Apple Pay or Google Pay. Our credit card processing terminals support near-field communication technology that allows modern coffee shops to accept payments from customers wirelessly.
Quick Transaction Speed: For any coffee shop, it is important to offer fast services to their customers. Coffee shop entrepreneurs understand that customers expect to grab their coffee and immediately leave the premises without waiting for long time. A high-speed credit card terminal processes transactions quickly so that your customers do not have to stand in line even during peak business hours.
Customizable Receipts: Traditional credit card processing terminals that were used in coffee shops only had the option of printing receipts on paper. However, these days customers prefer to get receipts over email and SMS. With our credit card terminals, you can get all these options.
Tip Functionality: Many customers believe in gratitude, and they like to leave a tip for good service. Our credit card processing terminals come with tip functionality, which allows customers to easily add a tip amount before completing the transaction. This feature is extremely popular among baristas and can be highly motivating for staff members.
What are some recommended POS systems for coffee shops?
Here are some popular POS systems that you may try for your coffee shop. PayBright is well-known for its user-friendly interface and kiosk capability. It is a good solution for busy coffee shops. A few other options include SkyTab, DejaPayPro, SambaPOS, and Exatouch.
