Credit Card Processing for
Food Trucks: A Practical Guide to Lower Costs
Accepting cards and digital payments is critical for food trucks today — but high processing fees can quietly take a major bite out of your profits. At FTO Expo, we want to help food truck owners take control of their processing costs with clear, fair, and practical solutions.
This guide explains everything you need to know to protect your margins and grow your business.
Understanding Credit Card Processing Fees
Credit card processing fees are made up of three major parts:
1. Interchange Fees
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Paid to the customer’s card-issuing bank.
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Covers the cost of providing and managing the card and protecting against transaction risk.
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Varies based on card type, transaction method, and your industry.
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Range: 1.15% + 5¢ to 3.30% + 10¢ per transaction.
2. Assessment and Other Card Brand Fees
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Paid to Visa, Mastercard, Discover, and American Express.
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Supports the infrastructure of the card networks.
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Based on your monthly sales volume and per-transaction item fees.
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Range: 0.13%–0.15% of monthly volume plus per-item fees.
3. Processor Fees
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Paid to your payment processing provider.
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Covers transaction handling, equipment, customer support, and fraud protection.
May include monthly fees, per-transaction markups, batch fees, statement fees, and equipment leases
Quick Overview of Typical Costs:
Fee Type | Who Gets Paid | Basis | Typical Range |
|---|---|---|---|
Processor Fees | Payment Processor | Monthly and per transaction | $9.95–$20 monthly, 0.18%–0.50% + 10¢ |
Assessment and Other Card Brand Fees | Card Network | Monthly volume and per item | 0.13%–0.15% plus per-item fees |
Interchange Fees | Card Issuer | Per transaction | 1.15% + 5¢ to 3.30% + 10¢ |
Common Hidden and Unnecessary Fees
While many processing fees serve a valid purpose, others can often be negotiated — or may not apply to every business.
Understanding the difference can help you avoid overpaying.
Common Hidden Fees:
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Sign-up Fees: One-time costs to start an account.
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Chargeback Fees: $15–$40 per dispute; preventable with strong customer service and clear refund policies.
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Non-Sufficient Funds Fees: Applied if your bank account can't cover withdrawals.
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Statement Fees: Monthly fees ($5–$10) for receiving account summaries.
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Minimum Processing Fees: Charged when sales fall below a required volume.
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PCI Compliance or Non-Compliance Fees: Annual security charges, sometimes negotiable.
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Terminal Leasing Fees:
Important reminder: Equipment leases are long-term, binding contracts, similar to vehicle or restaurant equipment leases.
Breaking a lease can trigger significant penalties.
👉 Before signing with any processor, ask for a full list of fees and verify what applies to your food truck.
Pricing Models: Choosing the Best Option for Your Business
Not every pricing model fits every business. Here's a clear breakdown of your options:
1. Interchange-Plus (Cost Plus) Pricing
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Structure: Interchange fees + assessment fees + a fixed markup.
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Advantages: Full transparency and usually the lowest total cost over time.
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Considerations: Can be confusing because different transactions have different costs — and some providers may use this complexity to hide extra fees.
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Example Rate: Cost + 0.5% + 10¢ per transaction.
2. Flat-Rate Pricing
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Structure: One simple rate across all transactions.
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Advantages: Predictable, easy to understand, ideal for startups and seasonal businesses.
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Considerations: You will overpay for cheaper transactions, especially debit cards.
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Example Rate: 2.59% + 10¢ per transaction.
3. Tiered Pricing
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Structure: Transactions fall into "Qualified," "Mid-Qualified," or "Non-Qualified" categories.
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Advantages: Simpler than Interchange-Plus; often less expensive than Flat-Rate if properly set up.
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Considerations: Can backfire and become costly if the tier system is poorly structured.
Be cautious of processors advertising extremely low "Qualified" rates that lead to high Non-Qualified charges. -
Example Rate: 1.5%–3.5% depending on card type and transaction method.
Pricing Model | Structure | Best For | Example Rate |
|---|---|---|---|
Tiered | Qualified/Mid/Non-Qualified | Stable, mostly swiped transactions | 1.5%–3.5% |
Flat Rate | Single fixed rate | Small or seasonal food trucks | 2.59% + 10¢ |
Cost Plus | Interchange + fixed markup | High-volume, growing food trucks | Cost + 0.5% + 10¢ |
How to Read and Understand Your Merchant Processing Statement
Reading your statement properly helps you spot issues early — and stay in control of your processing costs.
Key Areas to Review:
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Summary: Total sales, refunds, deposits, and chargebacks.
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Transaction Detail: Card types used (debit, credit, rewards) and how transactions were processed (tap, chip, manual).
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Fee Breakdown: Specifics for interchange, assessments, processor markup, and any additional charges.
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Additional Fees: Batch fees, PCI compliance fees, chargeback fees, and any new line items.
How to Calculate Your Effective Rate:
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Formula: Total processing fees ÷ Total sales volume.
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Example: $150 in fees ÷ $5,500 in sales = 2.72% effective rate.
👉 If your effective rate is consistently over 2.75%, it may be time to renegotiate or switch providers.
How to Save on Processing Costs
Practical steps food truck owners can take to reduce costs:
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Choose a processor with transparent, mobile-friendly pricing.
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Negotiate for better terms — especially on PCI fees, statement fees, and minimum processing fees.
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Use mobile-optimized POS systems like Square, Clover Flex, Toast Go, or Fuego.
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Monitor statements monthly to catch creeping fees.
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Invest in good customer practices to prevent chargebacks.
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Consider Zero Cost Processing:
One of the most effective ways to control costs.
Zero Cost Processing programs allow you to legally pass processing fees onto your customers through compliant Cash Discount or Surcharge setups — protecting your bottom line without cutting into your profits.
Conclusion: Let’s Lower Your Payment Processing Costs
FTO Expo is here to help food truck owners succeed.
By choosing the right processing model, reviewing your statements regularly, and negotiating fair terms, you can keep more of your hard-earned profits where they belong — in your business.
Want to see if you're overpaying for card processing?
Get a free statement review today.
Let’s find the best solution for your food truck.