When it comes to EPOS and payment processing, do you source them from the same provider? For some hospitality businesses, doing that has been controversial – but done right, there are definitely upsides.
So what’s are the two sides of the argument about EPOS/payment bundling?
What to avoid:
Your credit card provider gives you ‘free’ restaurant EPOS software but bundles the contract. It means if you want to change the credit card payments provider, you have to change the point of sale into the bargain.
An unscrupulous provider holds you to high processing charges for every transaction – and you can’t escape without investing in new restaurant EPOS.
Some providers charge steep fees if you want to terminate your contract early.
Some providers love to sell – but not happy about providing after-sales support.
Not a great recipe for success is it?
We saw a recent example where a large New York restaurant group got its fingers burned on a 10-year EPOS agreement that saw processing rates rise to a massive 4% – and had no easy way out of the deal. See more.
But having said that, we wouldn’t want you to shy away from sourcing your restaurant EPOS and payments processing from the same provider – it’s just a matter of finding the right one.
How you benefit:
1. When you deal with one reputable company for communications and billing support, your life is a lot easier.
In the daily rush of a restaurant business, who has time to call several providers if the system gets a glitch?
Having one point of contact – and a great relationship with that contact – makes sure issues are ironed out fast so your restaurant can go on making and taking money uninterrupted.
2. Because you are buying an integrated system, you can be sure the technology will work together, and be confident the PDQ machines will communicate with your restaurant EPOS.
This is vital for an uninterrupted business flow and for maintaining business continuity – so important in hospitality provision.
3. You gain access to payment data. This gives huge insight into your customers – you understand where they are located and which other places they spend their money (including with competitors).
Then you can build this into your customer relationship management (CRM) system to create well-targeted marketing campaigns that engage with what your customers really want and like.
4. Having integrated EPOS and payment capability streamlines your business operations, offering benefits such as ease of cashing up and good integration with your accounting system.
The 7 questions you should ask your potential supplier
- Can I change my credit card payments provider if I want to?
- What do you charge for processing payments – and will the charges stay the same?
- If terminate the contract, is there a fee?
- Is your restaurant EPOS technology supported by a technical helpdesk 24/7?
- Will you give me one point of contact after the sale?
- How can I be confident the technologies work together?
- Will the technology you provide integrate with my other back end systems?
Don’t be persuaded by a hard sell from a rep who just wants to clean up and ship out. Instead, seek a genuine consultant who works with you to understand what your very individual business needs – both now and after installation.
And above all, don’t feel you need to rush into this decision. Remember, it’s one of the most important choices you can make for your business.