What is a fee?

A fee is an extra cost added on top of a payment to cover administrative or operating expenses. In restaurants and cafés, fees typically arise in connection with payment handling – for example when a customer pays by credit card or uses a digital payment method. A fee can also arise when using external services that involve some form of processing or intermediation, such as a payment gateway.

A fee can be either a fixed amount or a percentage of the total purchase. In some cases the business pays the fee, in others it is passed on to the customer – depending on industry practice and the relevant legislation.

An example from a restaurant:

Imagine a customer paying the bill with an international credit card. The restaurant's payment provider charges a processing fee of 2.5% of the transaction amount. On a bill of €100 this comes to €2.50 in fees. The amount is recorded automatically in the POS system as an expense to be covered – and is either paid by the restaurant itself or, where the rules allow it, added to the customer's bill. In the EU, surcharges on ordinary consumer cards are generally not allowed, so check the rules in your country.

Why is it important to know about fees in POS systems?

As a restaurant or café owner, it is important to know when and how fees arise in connection with payments. Over time, fees can add up to a significant expense, so keeping track of them is essential for both financial management and correct pricing. A POS system like Flexybox calculates fees automatically, so you avoid errors and manual calculations.

Flexybox and fees

The Flexybox POS system handles fee calculation on transactions automatically. When a customer pays, the system calculates any fees related to the payment method or integration. This gives you a transparent picture of payment costs and contributes to correct bookkeeping. The system also helps you keep track of the expenses linked to different payment methods – for example when using an external payment gateway.

Read also:

– What is a duty?

– What is a payment gateway?

Frequently asked questions

A duty is a statutory payment to the state, such as VAT, while a fee is a cost added to a payment, typically to cover costs such as payment processing or administration.

It depends on the applicable legislation and the payment agreement with your provider. Many restaurants choose to build fees into their prices, while others pass them on directly where possible.

They can be payment card fees, payment gateway fees or fees for mobile payment services. These are often calculated as a percentage of the purchase amount.

You can compare payment providers and choose the one with the lowest fee structure, or encourage customers to use lower-cost payment methods, such as domestic debit cards rather than foreign credit cards.