8 Best Merchant Services for Coffee Shops: A Full Guide in 2024

The merchant service provider you choose for your coffee shop affects how smoothly transactions are processed and how well you can service your customers, manage your inventory, track sales, and ultimately grow your business.

Unfortunately, many merchant services claim to be ideal for cafes but fall short of essential features like multiple payment support and user-friendly reporting tools. The wrong choice can lead to slow transaction times, frustrated customers who won’t return, and hidden fees that eat into your profits.

You need a merchant service that integrates seamlessly with a robust point-of-sale system, offers transparent pricing, provides excellent customer support, and offers relevant features that streamline your coffee shop’s operations.

As your friendly neighborhood payment expert, I’ve researched multiple providers and identified the 8 best merchant services for coffee shops. The best option I found is Leaders Merchant Services (LMS). In addition to low fees and reliable customer support, its extensive selection of easy POS integrations streamlines operations so you can focus more on making the perfect cup of coffee. You can contact LMS to learn more or read on to see my other recommendations.

What We Look For in the Best Merchant Services for Coffee Shops

When selecting the best merchant services, I focused on features and benefits that cater specifically to the needs of coffee shops. Here’s what I prioritized during my tests:

• Low transaction fees and transparent pricing. Coffee shops often operate on thin margins, so minimizing transaction costs is crucial. I chose services that offer competitive rates and clear pricing structures to help you maintain profitability.
• Multiple payment options. Today’s cafe clientele expect flexibility in how they pay. I selected services that support various payment methods, including credit cards, mobile payments, and contactless options.
• Booking/ordering functionality. Having integrated booking and ordering systems is essential for coffee shops that offer pre-ordering or reservations. I looked for merchant services that streamline these processes, helping you manage your operations more efficiently.
• POS integrations. Smooth integration is key whether you’re using a proprietary POS system or integrating with third-party solutions. I prioritized services that offer versatile POS compatibility, ensuring smooth transactions and consistent operations.
• Security features. Protecting customer data and transactions is non-negotiable. I selected services that offer robust security features, including PCI compliance and chargeback protection, to safeguard your business and clientele.

1. Leaders Merchant Services: Low Rates and Extra Features1

Leaders Merchant Services (LMS) offers some of the lowest processing fees on the market. For swiped card transactions, rates start as low as ~0.15% + $0, while virtual terminal transactions go for ~2.9% + 30¢. LMS also lets you negotiate fees (within reason). LMS guarantees to match or beat your current merchant service price, or you’ll receive a $200 gift card for allowing them to review your quotes.

LMS integrates with several POS systems, including Clover, First Data FD150, and Magtek Mini-MICR. Personally, I’m a big fan of Clover POS systems for coffee shops. Their Rewards tool lets you easily create a customer loyalty program, while the order ahead feature lets you receive and process coffee orders for takeout, dine-in, curbside pickup, and delivery.

I also found Clover’s extensive marketplace to be very resourceful. It provides apps for effectively handling payroll, building schedules for administrative tasks, creating coupons and gift cards for customer retention, and so much more. However, be aware that LMS may charge additional fees for software and PCI compliance.

Features and Benefits

• Cash advances. LMS provides merchant cash advances, which can be useful if your coffee shop needs quick access to funds for expansion, equipment purchases, or other operational needs.
• Shopping cart integration. LMS’s shopping cart integration allows you to connect an “add to cart” feature to your online ordering sites, making it easy for customers to place coffee orders.
• High approval rate. With a 98% approval rate, LMS offers its services to a wide range of businesses. This includes small and newly established coffee shops with low credit scores, which might otherwise struggle to secure merchant services elsewhere.
• Dedicated chargeback department. As an LMS merchant, you get specialized support for handling chargebacks, which can help minimize losses from disputed transactions.

Read our full Leaders Merchant Services review for more on pricing.

2. Square: POS With Built-in Order Processing For Coffee Shops1

Square is one of the few merchant services that offers a POS system specifically designed for coffee shops. And I think it’s really cool that Square provides a demo of how this POS equipment operates, allowing you to understand its functionality before committing. You’ll be able to experience the checkout process, fund transfers, gift card applications, and menu customization firsthand.

With Square’s POS, you can access detailed sales and inventory reports, helping you identify metrics like popular coffee flavors and peak business hours. This, in turn, allows for better inventory management and staffing decisions. You’ll also get access to Square Staff and Payroll, which simplify employee management and help you handle scheduling, payroll, and other HR tasks.

Square provides a comprehensive range of hardware, including a stand, terminal, and card reader. While you’ll have to pay for the stand and terminal, you get a free card reader when you sign up with Square. The company’s software is also free, and you can use it on any Square POS device. You can get started with Square for free – only pay a processing fee of 2.5% + 10¢ whenever you receive a payment.

Features and Benefits

• Fast and easy onboarding process. Square’s onboarding process is super fast. Once you create an account and provide details about your coffee business, you can immediately start taking orders.
• Email/SMS marketing. Square includes email and SMS marketing tools, making it easy to engage with customers, promote special offers, and drive repeat business.
• Gift cards and loyalty programs. You’ll get support for gift cards and loyalty programs, which can help increase customer retention and encourage higher spending.
• Square Kiosk: The Square Kiosk is a self-serve ordering solution that can help update menus instantly when an item is out of order, reduce wait times, and offer upselling opportunities through add-ons and customizations.

To learn more, check out our comprehensive Square review.

3. Paysafe: Extensive Range of Payment Solutions For Cafes1

Paysafe has the largest number of payment methods I’ve seen from a merchant service – a whopping 250+ payment solutions including credit and debit cards, bank transfers, virtual wallets, digital wallets, and local payment solutions. This diversity will allow your coffee shops to cater to various customer preferences.

Moreover, you can request payments via multiple channels like digital invoicing, MOTO, pay-by-link, and QR code payments. You can also set up subscription-based billing for repeat customers who want a consistent coffee supply. This availability of multiple channels makes it possible for your cafe business to attend to walk-in customers and those ordering online or by phone.

If you opt for an in-person account, Paysafe will give you a free mobile card reader, which you can connect to your mobile device and use to process transactions via the Paysafe Mobile Pay app. Paysafe also integrates seamlessly with Clover Go and Pax A920. Rates start from 0.50% + $0.10 per transaction and $7.95 monthly. Just be aware that Paysafe’s contract terms tend to be long, which could limit your flexibility if you want to pivot to a different merchant service.

Features and Benefits

• Dedicated account manager. Paysafe gives you a dedicated account manager to assist in setting up and optimizing payment systems, addressing any concerns, and offering tailored advice to enhance business operations.
• Risk management team. This team helps mitigate potential risks, ensuring secure transactions and protecting your coffee shop from fraudulent activities.
• Comprehensive reports. With Paysafe’s reporting tools, you can track sales, analyze customer preferences, and manage finances more effectively.
• Fast payouts. Paysafe gives you quick access to your funds (usually within 1-2 business days), helping you maintain cash flow so you can restock supplies and manage expenses promptly.

For more details, check out our detailed Paysafe review.

4. Stax: Best for Established Coffee Shops1

Stax provides a subscription-based pricing model with zero markup on interchange fees, which is ideal for coffee shops that process over $8,000 monthly. This model involves a flat $99.00 monthly fee and a small per-transaction charge of 15¢ + interchange (online), so you don’t have to worry about losing a huge portion of your profits to Stax. What’s more, you get to save up to 40% on card payments with Stax’s plan.

One of my favorite Stax features for coffee shops is its partnership with Dining Alliance, a Group Purchasing Organization (GPO) for independent restaurants, including cafes. Joining this GPO comes with many benefits, including access to POS systems for contactless and card payments, training programs for your employees, automated inventory management with RFID, online ordering, and more.

Stax also provides tools for adding a pre-built shopping cart to your ordering website. It allows you to pass transaction fees onto customers, which can help reduce costs. I just wish all these extra features were included in your plan as standard. Unfortunately, you’ll have to pay an additional monthly fee to access the shopping cart and the option to pass on transaction fees.

Features and Benefits

• Multiple POS options. Stax integrates with almost every third-party POS device, including SwipeSimple, Dejavoo, and PAX. You’ll most likely be able to retain your existing hardware if you switch to Stax.
• Stax mobile app. You can install Stax’s mobile app on your mobile device and use it as a terminal for card payments.
• QuickBooks integration. Stax seamlessly syncs your payment data with QuickBooks, streamlining your accounting and helping you save time on administrative tasks.
• Stax Pay. This all-in-one payment platform lets you analyze your sales data, create invoices, view customer information, and more.

For more information, read our expert Stax review.

5. Payment Depot: Reliable Chargeback Support1

If your coffee shop often operates during early mornings and late nights, you’ll benefit from Payment Depot’s 24/7 customer support and risk monitoring. These features ensure that any technical or fraud-related issues are addressed promptly, minimizing downtime and protecting your coffee business from chargebacks and fraud.

When you sign up with Payment Depot, you get a free Dejavoo Z11 terminal. This terminal supports EMV chip cards and contactless payments so that you can handle various payment methods. You can negotiate with Payment Depot for additional free terminals if you have multiple service points, such as drive-thru windows and in-store counters.

Payment Depot offers flat-rate pricing similar to Stax but with a slightly lower minimum monthly fee of $0. It also provides an interchange+ plan with zero monthly fees and a minimum per-transaction rate of 0.2%-1.95%. While this plan is great for coffee shops with variable sales volumes, it’s a bit more expensive than what competitors like LMS offer.

Features and Benefits

• Certified Clover equipment reseller. As a certified reseller of Clover equipment, Payment Depot can provide your coffee shop with advanced POS systems that integrate seamlessly with other business operations, such as inventory management and customer engagement.
• Comprehensive payment dashboard. The payment dashboard offers detailed transaction data and insights, which can help you monitor sales patterns, manage inventory, and identify peak times.
• Pre-built shopping carts. Payment Depot’spre-built shopping carts make it easy for you to offer pre-orders or delivery services to your customers.
• Next-day deposits. Payment Depot ensures you have quick access to your funds, which can improve cash flow management for your coffee business​.

Have a look at our expert Payment Depot review for more details.

6. Chase Payment Solutions: Fast Payouts and Great Software1

Chase Payment Solutions provides same-day funding for coffee businesses with a Chase Business Banking account. It’s rare to see a merchant service provide same-day payouts, so I was impressed with this offering from Chase. The Chase Banking account comes with extra costs, but you can waive the fee if you maintain a minimum daily balance of $2,000.

Another thing that impressed me was Chase’s partnership with TouchBistro, a payment management service that provides tailored solutions for food businesses like coffee shops. These solutions include customer-facing and kitchen display systems, online ordering and reservations, inventory management, customer insights, and loyalty programs.

Chase is one of the few merchant services that offers its own specialized software. For instance, coffee shops that host events or offer subscription-based products can use tools like FuseBill for subscription management and EventZilla for event handling. Just note that some of these tools are paid while some come with Chase’s plans, which start from 2.6% + 10¢.

Features and Benefits

• Chase Mobile. If you’re a business owner who’s always on the go, Chase’s mobile app allows you to manage your payments and business accounts from your smartphone, no matter where you are.
• Comprehensive developer toolkit. If Chase lacks a particular software solution you need, you can build one yourself using its library full of SDKs and APIs. It comes with documentation to guide you and a sandbox environment to test your creations.
• Zero liability protection. If you get scammed but comply with data security standards and report fraudulent transactions promptly, Chase will reimburse the money you’ve lost.
• Multiple payment gateways. Chase gives you access to Authorize.net and Orbital, so you have two powerful virtual terminals for handling card-not-present transactions.

Check out our full Chase Payment Solutions review to learn more.

Other Notable Merchant Services for Coffee Shops

7. Sekure Payment Experts1

Sekure makes it clear that it’s not a payment processor. Rather, it’s a team of payment experts that connects businesses like your coffee shop to the best merchant services. Fortunately, Sekure has several fruitful partnerships with POS providers like Cluster and Payanywhere. It also provides more than 100 relevant features and integrations for your cafe, including online ordering, payroll reporting, and delivery processing.

I like the quick survey Sekure provides on its website. It aims to learn about your coffee shop business and recommend the most suitable rates, equipment, and merchant services. That said, I’m not a fan of Sekure’s 3-year contract, which locks you in with early termination fees.

8. Helcim1

Helcim offers a comprehensive e-commerce platform ideal for coffee shops looking to expand their sales online. This system allows you to set up a fully hosted online coffee store where you can list your menu, offer online ordering, and manage orders seamlessly. It’s a great way to reach a broader audience or provide convenient pickup options for customers.

Helcim’s card reader supports contactless and chip & PIN transactions but not swiped transactions. While Helcim’s POS software allows you to key in transactions, create invoices, and request payments via SMS and email, I wasn’t too pleased with Helcim’s POS hardware limitations – you can’t integrate any third-party terminal with your merchant account. While this isn’t a dealbreaker, Helcim might not be a great fit if you’re migrating from another processor.

The Right Merchant Service Can Brew Success for Your Coffee Shop

Choosing the right merchant service is important for improving your coffee shop’s efficiency and growth. You want a provider that offers unique features but ones that are tailored to your specific business needs.

Leaders Merchant Services is my top recommendation1 for low transaction fees and multiple POS integrations. It offers competitive rates, excellent customer support, and seamless integration with various POS systems, making it great for small cafes and larger coffee chains.

For coffee shops that want a POS solution to handle all sorts of business operations, from detailed sales reporting to inventory management, Square is a solid choice1. It comes with comprehensive POS equipment and software tailored specifically for cafes.

Alternatively, if providing versatile payment options for your customers is more important, consider Paysafe1. It supports over 250 payment methods, including credit and debit cards, digital wallets, and bank transfers.

FAQ

Do coffee shop owners make a lot of money?

It depends. Some coffee shop owners make a lot of money, but it’s also a competitive field where many businesses struggle to break even. You’ll need to minimize costs, including transaction fees, to maximize earnings. Leaders Merchant Services is an excellent choice for coffee shop owners looking to increase profitability. It offers low rates and negotiable fees, helping you keep more of your revenue and reduce the impact of processing costs on your bottom line.

What is the best POS system for cafes?

Square provides the best POS system tailored specifically for cafes. This system offers detailed sales and inventory reports, helps manage staff schedules, and provides marketing and customer engagement tools. Square also supports various payment methods and comes with a free card reader.

Is Square good for cafes?

Yes, Square is good for cafes due to its comprehensive POS system, ordering/booking features, and ease of use. However, different coffee shops have unique needs, so I also recommend exploring other great merchant services for coffee shops.

How much does a good POS system cost?

The cost of a good POS system can vary from a few hundred to several thousand dollars, depending on the features and equipment. To manage costs effectively, consider choosing affordable credit card processors that offer competitive transaction fees and transparent pricing structures. This helps keep your expenses manageable while providing the essential tools for efficient operations.