Why Card-Not-Present Fees Can Kill a Coffee Shop
Pricing decisions for coffee shops when it comes to mobile and online ordering are crucial coming out of the pandemic. Here are important tips for comparing costs.
nick-martin
May 18, 2021
Pricing decisions for coffee shops when it comes to mobile and online ordering are crucial coming out of the pandemic. Understanding the true cost of different solutions can mean the difference between profitability and struggle.
The Hidden Cost of Card-Not-Present Fees
When customers order online or through mobile apps, their transactions are classified as "card-not-present." These transactions typically carry higher processing fees than in-person swipes—sometimes significantly higher.
For a coffee shop with average tickets of $5-7, even small differences in processing fees add up quickly. A few percentage points can mean thousands of dollars over a year.
What to Look For
When comparing mobile ordering solutions, ask:
- What's the total cost per transaction? Include processing fees, platform fees, and any monthly charges.
- Are there hidden fees? Some platforms charge extra for features that should be standard.
- How does pricing scale? Will costs go up as you grow?
joe's Approach
At joe, we built our pricing specifically for coffee shops. We understand that margins are tight and every percentage point matters. That's why we offer industry-low rates with no hidden fees.
Contact us at success@joe.coffee to see how joe compares to your current solution.