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The Ultimate Guide to Credit Card Terminals in Singapore for Restaurants

Dec 1, 2024—
5 min read
The Ultimate Guide to Credit Card Terminals in Singapore for Restaurants

What is a Credit Card Terminal?

A credit card terminal is a device that enables businesses to accept payments made via credit or debit cards. These terminals process transactions securely, ensuring funds are transferred from the customer's card issuer to the merchant's account. Modern credit card terminals often support multiple payment modes, including contactless payments, mobile wallets, and QR codes, making them essential for businesses operating in a tech-savvy and cashless society like Singapore.

Why Accepting Credit Cards is Essential in Singapore

Singapore boasts one of the highest credit card penetration rates globally, with consumers increasingly relying on credit cards and digital wallets for daily transactions. Restaurants, in particular, must cater to this trend to meet customer expectations. Many diners now prefer using Apple Pay and Google Pay, leaving physical wallets at home and paying with their smartphones or smartwatches instead.

Benefits of Accepting Credit Card Payments:

  • Increased Sales Opportunities: Customers are more likely to spend when using credit cards compared to cash.
  • Convenience: Reduces reliance on cash handling, speeding up service and improving operational efficiency.
  • Enhanced Customer Experience: Accepting a wide range of payment options ensures customers feel catered to.

    • Credit Card Terminal Fees Breakdown

    When choosing a credit card terminal provider, understanding the fee structure is crucial. Here’s a breakdown of the common fees associated with credit card terminals:

  • Transaction Fees or Merchant Discount Rate (MDR): Typically 2-3% of each transaction. These rates are influenced by card networks like Visa and Mastercard but are largely set by the provider, such as banks or payment processors.
  • Monthly Fees: Some providers charge a monthly rental fee for the terminal.
  • Upfront Fees: Costs incurred for purchasing or setting up the terminal.

    • Comparison of Credit Card Terminal Providers in Singapore

    The section below compares the leading credit card terminal providers in Singapore, highlighting their pros and cons:

    ##### DBS: Trusted Brand with Wide Acceptance

  • Pros: A reliable and well-known brand, DBS offers wide acceptance and dependable customer support for merchants.
  • Cons: Higher transaction fees may not be ideal for smaller businesses.

    • Website: https://www.dbs.com.sg

    ###

    ##### OCBC: Competitive Rates for Account Holders

  • Pros: Offers competitive rates for merchants who already hold OCBC accounts, making it a good option for existing customers.
  • Cons: Features are limited to basic payment processing, with fewer advanced tools.

    • Website: https://www.ocbc.com

    #####

    ##### UOB: Seamless Integration with Ecosystem

  • Pros: Reasonable rates and seamless integration with UOB’s broader ecosystem, benefiting account holders.
  • Cons: Setup processes can be lengthy, delaying implementation.

    • Website: https://www.uob.com.sg

    #####

    ##### NETS: Low-Cost Local Payment Solution

  • Pros: A widely used local payment system with low transaction fees, making it a cost-effective solution for Singapore businesses.
  • Cons: Limited to local payment networks, restricting its versatility for international customers.

    • Website: https://www.nets.com.sg

    #####

    ##### Oddle's Next-Gen Payment Terminal: Advanced Insights and Transparent Pricing

  • Pros: Provides transparent pricing along with tools for customer insights and retention, making it ideal for data-driven businesses.
  • Cons: As a new entrant, it’s less recognised among traditional payment providers.

    • Website: https://www.oddle.me

    #####

    ##### KPay: Affordable for Small Businesses

  • Pros: A low-cost solution, KPay is a great choice for small businesses looking to minimize expenses.
  • Cons: Offers fewer advanced features compared to other providers.

    • Website: https://www.kpay-group.com

    #####

    ##### Qashier: All-in-One POS with Payment Integration

  • Pros: Combines POS functionality with seamless payment integration, providing an all-in-one solution for businesses.
  • Cons: Higher upfront costs may deter smaller businesses.

    • Website: https://qashier.com

    #####

    ##### Fiserv: Global Brand with Robust Support

  • Pros: A trusted global provider with a robust support system for merchants.
  • Cons: High fees make it less appealing for small businesses.

    • Website: https://www.fiserv.com

    #####

    ##### GlobalPayments: Versatile and Reliable

  • Pros: Supports a wide range of payment methods and offers reliable systems for merchants.
  • Cons: The pricing structure can be complex, making it harder for businesses to predict costs.

    • Website: https://www.globalpaymentsinc.com

    Competing on More Than Transaction Fees

    While transaction fees often dominate the discussion when choosing a credit card terminal provider, the real differentiator lies in how payment technology is leveraged to drive growth.

    ##### Why Transaction Fees Alone Don’t Tell the Full Story

  • The difference in transaction fees between providers is typically minor, often within a range of 10 basis points (bps).
  • However, focusing solely on these fees overlooks the potential revenue growth that can be achieved by leveraging payment technology effectively.

    • Turning Payments into Growth with Oddle Terminals

    Oddle Terminal goes beyond processing payments by enabling restaurants to turn transactions into actionable insights, helping them grow their revenue by as much as 20%. Here's how:

    ##### 1. Understanding Customer Behaviour with Fingerprint Technology

    Oddle Terminal's Fingerprint Tokenisation Technology goes beyond secure payment processing to capture meaningful data about your customers. By creating unique profiles for each visitor using anonymised credit card data, restaurants can:

  • Track Customer Retention Health: Gain a true health score on customer retention by understanding how often guests return and the strength of their loyalty. This moves beyond simple revenue tracking to provide actionable insights into customer behaviour.
  • Capture 100% of Customers: Unlike traditional systems that require opt-ins, Oddle Terminal automatically captures data from every transaction, ensuring you never miss a valuable insight.
  • Recognise and Address Customer Attrition: Identify early signs of customer disengagement and take proactive steps to re-engage them before they stop visiting altogether.By leveraging this comprehensive customer data, restaurants can track return rates, identify loyal patrons, and address attrition before it impacts the business.

    • ##### 2. Engaging Customers to Drive Repeat Visits

    With the insights gathered, Oddle helps restaurants create meaningful engagements:

  • Incentivise Returns: Issue return vouchers directly at the point of payment to encourage repeat visits.
  • Automate Engagement: Set up automated reminders for unused vouchers or personalized offers, keeping the restaurant top-of-mind.
  • Capture Feedback: Post-payment surveys linked to receipts provide valuable insights into customer satisfaction.

    • #####

    ##### 3. Boosting Revenue by Maximising Customer Lifetime Value

    While transaction fees impact margins slightly, Oddle Terminal helps restaurants significantly boost their top line by focusing on:

  • Retention Metrics: Understanding and improving customer retention.
  • Revenue Insights: Identifying patterns in spending behavior to optimize marketing efforts.

    • ###

    The Bottom Line

    The ability to grow revenue by up to 20% through enhanced customer retention and engagement far outweighs the marginal differences in transaction fees.

    Conclusion

    Credit card terminals are more than just tools for payment processing—they are gateways to customer insights and growth opportunities. For restaurants in Singapore, choosing the right provider means balancing cost, convenience, and value-added features.

    Why Oddle's Next-Gen Payment Terminals Stand Out

  • No hardware rental or annual lock-in fees
  • Transparent and competitive pricing that levels the playing field for restaurants of all sizes.
  • Innovative Fingerprint Technology to track and engage customers effectively.
  • Seamless integration with Oddle's ecosystem for loyalty, marketing, and reservations.

    • By focusing on turning payments into growth, Oddle Terminal helps restaurants not only process transactions but also build stronger relationships with their customers and drive sustainable revenue growth.

    Learn more about Oddle's Next-Gen Payment Terminals here