Coffee Shop Credit Card Processing: Swipe. Tap. Blend.
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 at coffee shops 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 than others. No quick-service restaurant or coffee shop can ignore the importance of credit card processing.
Transaction flow of Coffee Shop credit card processing
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 processing for coffee shops happens within a second; however, it involves various steps.
The customer gives the card to the merchant. The merchant swipes it over the terminal. Occasionally, the terminal may ask for a personal identification number from the customer. If the card is NFC-enabled, the customer may also tap it at the terminal for processing. In this initial step, the payment gateway collects the credit card information and sends the details to the payment processor for authorization.
The bank that issued the customer’s credit card receives the encrypted information. The purpose of forwarding this information is to obtain confirmation from the issuing bank regarding the customer’s credit limit on the credit card. The card issuer’s response determines whether to approve or decline the transaction.
If the issuer approves the transaction, then the message gets displayed on the coffee shop’s payment terminal. The customer gets a receipt for the transaction. If the card issuer does not approve the transaction, the terminal will display a transaction declined error.
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.
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 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: Research shows that coffee shops that accept digital payments have higher average order values. Customers spend more with credit or debit cards because they are not limited by cash. 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 tiny margin of profit. 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 coffee shop’s payment terminal completes the credit card transaction, the rest of the process occurs automatically.
Better Business Reputation: A coffee shop that allows customers to make payments using modern payment methods is generally considered customer-centric. This leads to word-of-mouth referrals and increases repeat business. An association with a reputable 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 modern 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 rapid services to their customers. Coffee shop entrepreneurs understand that customers expect to grab their coffee and immediately leave the premises without waiting for a 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: Traditionally, coffee shops used credit card processing terminals that could only print 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: Most customers believe in gratitude, and they like to leave a tip for excellent 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.
Rates & Fees for Coffee Shop Merchant Accounts
The fees for coffee shop merchant services can vary based on many factors, such as the payment processor, transaction volume, and the types of payment methods accepted. However, here we have shared a tentative fee structure that will help you to estimate costs. (For an accurate quote and cost savings analysis, feel free to contact us.)
Credit & Debit Card Processing Fees: Transaction Fees: 1.5%–3.5% per transaction (varies by card type and pricing model). Flat rate pricing options generally range between 2.6% + $0.10 to 2.9% + $0.30 per transaction.
Monthly & Setup Fees: $10–$30 Some providers charge, and some don’t.
Setup Fee: $0–$500 This rate also depends on the procedures; many waive this.
Equipment costs: Basic credit card terminals cost between $100 and $300 with a one-time purchase or $10 to $30/month on a rental basis.
Coffee Shop POS System: $500–$2,000 if you pay one-time or $30–$100/month if you pay subscription
Mobile Card Reader: $0–$100 Many low-risk providers offer this. Rates vary.
Chargeback Fee:Â Ranges from $15 to $25 per dispute.
Coffee Payment Solutions FAQ
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 beneficial solution for busy coffee shops. A few other options include SkyTab, DejaPayPro, SambaPOS, and Exatouch.
For a coffee shop, we suggest you explore Dejavoo terminals, as these terminals are fast, user-friendly, and excellent for high-volume transactions. P1. It has a large touchscreen and is ideal for quick orders. The interface is easy to use. This interface is particularly suitable for shops with high foot traffic. P3 is an all-in-one terminal, and it comes with a physical keyboard & printer—perfect for printing receipts instantly. If your shop prefers traditional keypads, this is a solid choice. P8 works as a stand-alone terminal. It is ideal for coffee shops that want flexibility.
