Hospitality Business: Card Machine & Merchant Account Case Study
25 July 2024
Written by Libby James
Libby James is the founder and Managing Director of Merchant Advice Service. Since 2016, she has worked directly with businesses and payment providers across merchant accounts, card processing, payment gateways and complex provider requirements.
Libby specialises in high-risk, declined and harder-to-place merchants, as well as businesses requiring specialist payment methods, integrations or international support. She writes and reviews Merchant Advice Service content, drawing on practical experience gained from real merchant enquiries and provider relationships.
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Case study summary
A small UK hospitality business contacted Merchant Advice Service when it needed to re-establish card-payment facilities after a prolonged period of closure.
The restaurant needed both a merchant account and a card machine so that it could resume accepting customer card payments as part of its return to normal trading.
Merchant Advice Service helped the business understand what it required and supported the process of arranging suitable card-payment facilities.
The business
The client was a small UK business operating within the hospitality sector.
Like many hospitality businesses, accepting card payments was an important part of serving customers and operating efficiently.
After a prolonged period of closure during the pandemic, the business needed to put its payment-processing arrangements back in place before returning to normal trading.
The problem
The business needed to re-establish its ability to accept customer card payments.
This meant arranging the core elements required for face-to-face card acceptance:
- a merchant account
- a card machine
- a commercial arrangement suitable for the business
- a payment setup that could support the restaurant as it resumed trading.
For a small hospitality business reopening after an extended closure, getting these practical payment arrangements in place formed an important part of becoming operational again.
What Merchant Advice Service identified
Merchant Advice Service worked with the client to understand the payment facilities it required rather than treating the enquiry as simply a search for the cheapest card-machine rate.
Relevant considerations for a hospitality business can include:
- how customers pay
- face-to-face transaction requirements
- the type of card terminal required
- expected transaction volumes
- average transaction values
- merchant-account requirements
- terminal rental arrangements
- the practical requirements of the business.
For this particular client, the immediate requirement was straightforward: establish a reliable way to accept card payments as the restaurant resumed operating.
The payment setup
Merchant Advice Service assisted the business with arranging a merchant account and card-machine rental contract.
The payment provider remained responsible for its own underwriting, commercial terms, account approval and ongoing payment-processing service.
MAS's role was to help the business understand what it required and support it through the process of establishing an appropriate payment route.
The outcome
The hospitality business successfully established card-payment facilities and was able to accept customer card payments again.
The original client feedback also highlighted the communication received throughout the process, describing it as prompt, friendly and professional.
Customer feedback
The client provided positive feedback following the setup of its card-payment facilities.
“Libby did a fantastic job of helping our small business get set up with a card merchant…”
The customer also highlighted the prompt, friendly and professional communication received throughout the process and said they would recommend Merchant Advice Service to other businesses.
Merchant Advice Service view
Hospitality payment requirements are often more practical than they first appear: the right setup needs to work for the way the business actually serves its customers.
Price is important, but businesses comparing merchant services may also need to consider:
- the type of card machine
- connectivity
- settlement
- contract length
- terminal rental
- transaction pricing
- EPOS requirements
- support
- how the payment setup may need to develop as the business grows.
A small restaurant taking payments primarily at the till may require a very different setup from a hotel, multi-site hospitality group, takeaway operation or venue using integrated EPOS and ordering technology.
Understanding those requirements first makes it easier to compare relevant payment-provider options.
Card payments for hospitality businesses
Restaurants, pubs, cafés, hotels and other hospitality businesses can use a range of payment technologies depending on how they operate.
These can include:
- countertop card machines
- portable card terminals
- mobile card machines
- integrated EPOS payments
- online payments
- payment links
- booking payments
- order-and-pay technology.
Businesses reviewing their wider hospitality technology can read the Merchant Advice Service guide to EPOS for hospitality businesses.
What this case demonstrates
- Mainstream businesses also need payment-provider support. Merchant Advice Service works with businesses looking for straightforward merchant accounts and card-payment facilities as well as those with more complex requirements.
- The business requirement comes first. Understanding how customers pay helps establish what type of payment setup is actually needed.
- Card machines and merchant accounts need to work together. Terminal choice forms part of the wider merchant-services arrangement.
- Communication matters. Smaller businesses may value having someone explain the process and help them understand what happens next.
- Price is only one consideration. Contracts, settlement, equipment, service and operational requirements can also affect provider suitability.
Comparing payment providers
Hospitality businesses reviewing an existing provider or arranging card payments for the first time can compare more than the headline transaction rate.
Merchant Advice Service recommends considering the complete payment requirement, including equipment, transaction pricing, settlement, contracts, integrations and service.
Read Compare UK Payment Providers for more information about assessing different payment-provider options.
About Merchant Advice Service
Merchant Advice Service is an independent UK business-to-business payments information, comparison and provider-matching service founded by Libby James in 2016.
MAS helps businesses understand their payment requirements and identify payment providers or specialist partners that may be relevant to the way they operate.
Its areas of payments coverage include merchant accounts, card machines, payment gateways, ecommerce payments, provider selection, switching providers, integrated payments, international payments, recurring payments, merchant finance and more complex payment requirements.
Merchant Advice Service is not an acquiring bank or payment processor and does not make final merchant-account underwriting decisions.
The MAS information, matching and introduction service is free to businesses. MAS may receive commission or a referral fee from some commercial partners where an introduction results in a completed product or account.
Read How Merchant Advice Service Works for more information about provider matching and the MAS commercial model.
