Are Credit Card Processors and POS Dealers Cannibalizing Themselves?


There’s no question COVID-19 turned all our lives upside down. For the restaurant industry, it meant pivoting as quickly as possible just to stay alive.

One of those pivots is adopting technology at a rate faster than any other time in history. From new ordering platforms making it easier to sell curbside/delivery to new contactless payment options for when guests are dining in, there’s no shortage of new solutions that have streamlined operations.

But what have these changes meant for the credit card processing industry? Or even the POS dealers and resellers?


Getting Cut Out of the Deal
Many processors and dealers have been so quick to accept and push solutions to their restaurant clients without stopping to think that they’re actually cutting themselves out of the deal.

What do we mean by that?

Restaurant POS dealers and credit card processors make a significant portion of their revenue from credit card transactions. However, most of the solutions that have emerged are using third-party online processors like Stripe and PayPal; they aren’t leveraging the restaurant’s existing processor.

So when a credit card processor or POS dealer strikes a deal with a third-party contactless payment solution and resells it to their restaurant clients, what they’re actually doing is driving business away from themselves and into the hands of a different online processor.


And most don’t even know they’re doing it. They’re being so reactive to the state of the industry that they aren’t stopping to think through how the transactions are being processed from these systems. Sure, a commissioned-based kickback program from that solution sounds great. But that’s not where the money lies. The money always has and still does lie within the transactions themselves. And once these processors get the restaurant onboarded with a contactless payment system, it’s hard to switch them away. Which means as consumers continue to accelerate their adoption of mobile payments, the processor and dealer put a knife to their own revenue stream for years to come


There’s a Better Way. Vemos Pay.
We at Vemos do not believe credit card processors or POS dealers should be cut out of the mobile payments revolution. In fact, we see it as an opportunity to increase revenue for not only the restaurant, but also the processor and POS dealer.
Because our legacy and upbringing has been in the inner-workings of this industry, we understand first-hand how the supply chain works and where the opportunities exist for all parties. That’s why we built Vemos Pay with the credit card processors in mind, and remains to be the only solution that is completely agnostic to work with multiple processors and POS systems.

How does that work?

Our unique technology allows the tokenized credit card to be sent directly through the restaurant’s existing credit card processor. This ensures the processor and POS dealer is still getting their cut of revenue from transactions, whether those transactions are happening on a mobile device or with a physical card at the POS.

Vemos Pay is also completely free to the restaurant as well as the customer, and integrates with over 16 POS systems. So dealers and processors alike can feel confident in recommending Vemos Pay to their clientele, while also ensuring they have a business model themselves for years to come.