How Zero-Cost EFTPOS Works for Restaurants: Saving Money and Enhancing Customer Experience

If you’re running a restaurant, you’re probably familiar with the delicate juggling act between providing a fantastic customer experience and keeping your costs down. One of those often-overlooked but steady expenses is EFTPOS fees. You want to offer the convenience of card payments without eating away at your margins. This is where “zero-cost EFTPOS” is served up on an immaculately presented platter. But how does it work, and is it really “zero-cost”? Let’s break it down in a way that makes sense for your business.

What Is Zero-Cost EFTPOS?

Zero-cost EFTPOS, sometimes referred to as “surcharge-free EFTPOS” or “no-cost EFTPOS”, is a system where restaurants can pass the cost of EFTPOS fees onto their customers rather than absorbing those fees themselves. This setup means that instead of your restaurant covering the cost of card transaction fees, the customer pays a small surcharge, often a percentage of their bill. While this may seem unusual to some, it’s a relatively common approach to maintaining profitability in the hospitality industry, especially in the current climate where every cent counts.

How Does It Actually Work?

Here’s a quick rundown of how zero-cost EFTPOS functions in a typical restaurant setup:

1. You Partner with a Zero-Cost EFTPOS Provider: Your business signs up with an EFTPOS provider that supports a zero-cost option. These providers are often third-party vendors with systems designed to apply surcharges at the point of sale. And if you’re savvy, you’ll find one that offers a fully integrated system like Ai Menu.
2. Customer Chooses to Pay by Card: When a customer opts to pay via EFTPOS (whether by debit, credit, or contactless), the zero-cost EFTPOS system calculates a small surcharge amount, typically between 1-2% of the transaction total. This surcharge covers the processing fees.
3. Transparent Surcharge Display: A clear notice is usually displayed at the point of sale (whether on the machine itself or on a small sign), explaining the surcharge. Some EFTPOS systems even display the surcharge amount directly on the screen, so the customer can see exactly what they’re paying.
4. The Customer Covers the Fee: Once the customer authorizes the transaction, the surcharge is added to their payment, effectively covering the fee that would otherwise be deducted from your restaurant’s revenue.
5. You Get the Full Sale Amount: The system ensures that the surcharge amount is routed to cover the transaction fee, meaning you receive the full sale total without any deductions.

Why Zero-Cost EFTPOS Is Gaining Popularity in Restaurants

Zero-cost EFTPOS systems are becoming increasingly popular among restaurant owners who want to minimize expenses while still offering the convenience of card payments. Here are some of the main reasons restaurants are gravitating towards this system:

1. Cost Savings

One of the primary benefits is the reduction in overhead. In the restaurant business, profit margins are notoriously thin, and transaction fees can quickly add up, especially if customers are regularly paying with cards. By implementing a zero-cost EFTPOS system, restaurants can save a significant amount over time by shifting these fees directly to the customer.

2. Maintaining Competitive Pricing

In a highly competitive market, every cent you save on expenses helps you keep your menu prices more attractive. Passing on EFTPOS fees can allow you to retain competitive pricing without continuously adjusting your prices to account for fluctuating transaction fees. This is especially valuable as the cost of ingredients and other supplies continues to rise.

3. Transparency with Customers

Contrary to what some business owners may fear, most customers are already familiar with surcharges on card payments and are unlikely to be taken aback by them. The key here is transparency. When customers see a notice of the small surcharge, they usually understand it as part of modern transaction processes. Additionally, most zero-cost EFTPOS providers offer clear displays of surcharges, ensuring that customers are fully informed.

4. Keeping Up with Digital Payment Trends

Cashless payments have become more common, especially since the COVID-19 pandemic. Customers prefer the ease and speed of using cards, contactless, or mobile payment options, and in some cases, it’s even preferred over handling cash. Zero-cost EFTPOS accommodates this preference without cutting into your profits, so you don’t lose out on potential business by being “cash-only.”

Potential Downsides and Considerations

As with any business decision, there are a few things to consider before jumping on board with zero-cost EFTPOS:

• Customer Perception: While many customers don’t mind a small surcharge, there may be some who are resistant to the idea. However, this resistance is often minor and can be managed with good communication.
• Payment Flexibility: For restaurants that cater to a variety of customers, including those who may prefer cash, it’s essential to continue offering multiple payment options to keep everyone happy.
• Legal Considerations: Depending on your location, there may be regulations regarding surcharges on credit card payments. Ensure you’re in compliance with any local laws or guidelines that apply to passing fees onto customers.

Is Zero-Cost EFTPOS Right for Your Restaurant?

Ultimately, zero-cost EFTPOS offers a straightforward way to offset transaction fees and keep your margins intact. It’s a smart option for restaurants looking to trim costs without sacrificing customer convenience. However, as with any change in your payment systems, it’s essential to consider the preferences of your clientele and your restaurant’s specific business model.

If you operate a high-volume establishment where even small savings add up quickly, zero-cost EFTPOS could be a perfect fit. On the other hand, if you’re running a fine-dining venue where customer experience is paramount, you might weigh whether a surcharge aligns with your brand’s values and customer expectations.

Final Thoughts: Adopting Zero-Cost EFTPOS with a Positive Spin

Adopting a zero-cost EFTPOS system can be a win-win for your restaurant. When implemented transparently and respectfully, it allows you to save on transaction fees while continuing to offer the convenience of card payments that customers appreciate. By reducing overhead in this way, you can focus more on what really matters: crafting delicious food, delivering memorable dining experiences, and growing your restaurant’s success.

After all, every small cost-saving measure adds up, and zero-cost EFTPOS could be a meaningful step toward keeping your business profitable, resilient, and prepared for the future. Join the revolution to Serve Smarter with Ai Menu.