What’s Cooking with Card Fees? How Restaurants Can Adapt to the Latest Credit Card Processing Changes

As the food service industry continues to rebound and evolve, one topic has become a hot-button issue in 2025: credit card processing fees. From national chains to local cafés, restaurants are feeling the heat as interchange fees rise, new technologies emerge, and customers expect smoother, more flexible payment experiences.

Here’s a breakdown of what’s happening, why it matters, and how your restaurant can stay ahead.

🍽️ Interchange Fees Are on the Rise—Again

Visa and Mastercard’s latest adjustments to interchange fees went into effect earlier this year, raising costs for many food service businesses, particularly those processing high volumes of credit card transactions. While a few sectors saw fee reductions, restaurants generally fall into categories where rates are holding steady or increasing slightly.

Why it matters: These small increases can add up quickly, especially for high-volume, low-margin businesses like restaurants. If you’re not auditing your processing statements or negotiating better terms, you could be leaving money on the table.

Pro Tip: Work with a payment processor who offers transparent, flat-rate pricing or interchange-plus models. Avoid providers with hidden markups or non-cancellable contracts.

💳 The Tipping Point: Digital Gratuities and Guest Experience

Another key shift in 2025 is how tips are being handled. With more restaurants turning to QR code menus, mobile pay-at-table options, and digital kiosks, the way customers leave gratuities is evolving.

The challenge? Many processors now charge additional fees on tip amounts, something most restaurant owners didn’t budget for. At the same time, digital tipping is leading to an increase in overall gratuities, which is great for staff but can complicate payroll and accounting.

Action Step: Ensure your payment solution allows for customized tip prompts, clear reporting, and integrates with your payroll system.

🧾 Surcharging & Cash Discounting—Is It Right for You?

With fees climbing, some restaurants are experimenting with surcharging (passing credit card fees onto customers) or cash discounting (offering a lower price for paying in cash). These strategies are legal in most states, including South Carolina, but must be implemented carefully to stay compliant with card brand rules.

Things to consider:

• Transparency is critical - signage and receipts must clearly disclose the surcharge.

• It may impact customer satisfaction if not communicated properly.

• Not all payment processors support these programs ethically or effectively.

  
  

🔒 Security and Compliance Remain Top Priorities

Recent breaches at national food chains underscore the importance of secure, PCI-compliant payment solutions. Mobile terminals, EMV chip readers, and tokenized transactions should be standard, not optional.

Protect your brand by ensuring:

• Your processor is PCI-DSS compliant.

• You have EMV-capable hardware.

• Your team is trained on safe payment practices.

  
  

👨‍🍳 Final Serving: How SignaPay Southeast Can Help

At SignaPay Southeast, we specialize in helping food service businesses navigate the complex world of payment processing. From simple, transparent pricing to restaurant-friendly features like pay-at-table solutions and integrated tipping, we offer the tech and the support, you need to thrive.

Whether you're a quick-serve counter spot or a fine-dining establishment, we'll help you keep costs down and service up.

👉 Ready for a complimentary statement review or payment consultation? Get in touch!