How we ranked restaurant processors
This list is in strict score order. Each option was scored with the six weighted criteria on our methodology page, the same ones used for every processor we review: holds and termination risk 25%, pricing transparency 20%, contract terms 20%, total cost 15%, support 10% and customer evidence 10%. We then kept only providers whose own pages show real restaurant features, such as tips, kitchen printers or table service.
That is why the order may surprise you. Toast is the most complete restaurant system here, yet it lands fifth, because its agreement renews itself every year and charges a fee to leave early [5], and it publishes few of its prices. Square lands fourth on its score; BatchOut, our processing service, earns money on Square sign-ups, and that did not move it. Heartland, which also sells restaurant systems, scored 2.5 and is left off because its restaurant pricing is by quote only.
Start with how you serve, then the rate
| Service style | Look at first | Why |
|---|---|---|
| Counter service: coffee, bagels, sandwiches | GoDaddy, Helcim, Square | No cents fee or no monthly fee; quick checkout |
| Food truck or festival stand | GoDaddy | Offline payments and a handheld terminal [3] |
| Fast casual with a kitchen screen | Square Plus | Kitchen display app at $30 a screen [8] |
| Full service with tables and coursing | Toast or Clover | Table mapping, tabs and bill splitting [10] |
| Established spot with its own POS | Dharma | Interchange-plus, Clover POS available [2] |
Clover's restaurant plans include table mapping, open tabs with card pre-authorization and bill splitting, but its Starter plan's Station Solo cannot take tap cards or phone wallets; tap payments need the Flex handheld or Station Duo on the higher plans [10]. If your guests tap to pay, price the Standard plan.
Tips, small checks and why the per-sale fee matters
Processors charge on the whole amount, tip included. Square says so plainly: its fee is taken from the total of each sale, including tax and tip [11]. A $40 dinner with an $8 tip is charged on $48 plus tax. That is normal across the industry, but it means tipping culture raises your card costs along with your servers' pay.
Small checks feel per-sale fees the most. On a $6 coffee, Square's 15¢ is 2.5% of the sale before the 2.6% rate even starts [8]. GoDaddy charges no cents fee on in-person sales [1], so a cafe with small tickets often does better there than a lower-looking rate elsewhere.
Card type matters on interchange-plus. Dharma's restaurant page prints what a $25 check costs on different cards: $0.40 (1.60%) on a regulated debit card, $0.70 (2.80%) on a Mastercard World Restaurant card and $0.82 (3.28%) on a World Elite card [2]. Dharma also offers a lower rate to restaurants with an average ticket under $25 [2]. A flat rate hides that spread; interchange-plus passes it to you, which helps a lot if your guests use debit.
Tip screens are standard. Helcim's POS, for example, suggests 15%, 18% and 20% by default and lets you switch to flat dollar amounts [12].
Contracts: the restaurant trap is the exit, not the rate
Restaurants change hands and close more often than most small businesses, so the cost to leave matters. Toast's agreement renews for one-year periods unless either side gives notice, and leaving early on pay-as-you-go costs $150 for each month left in the term [5]. On 18 months left, that is $2,700.
- Square: no locked-in contract, cancel or switch anytime [4].
- GoDaddy, Helcim: no term or cancellation fee [1][6].
- Dharma: no early termination fee, but a $49 closure fee [2].
- Clover: subscriptions run 36 months; buying outright avoids that, but the devices only work with Clover [10][13].
If you are buying a restaurant, ask which processing agreement and equipment lease come with it. A lease or auto-renewing agreement can stay with the business after you take over. Our how to switch processors guide walks through ending one cleanly.
New Jersey restaurants and surcharges
Many New Jersey restaurants add a card surcharge. State law allows it but caps it at your actual cost to process the payment [14], and card rules limit surcharges to credit cards, never debit [15]. Read our New Jersey surcharge guide before you turn one on, and see the restaurant processing guide for costs by restaurant type.