A Modern Day Approach to Combating Processing Fees
How to avoid swipe fee build-up at your venue or event.
“What about processing?” Like clockwork, our sales team gets asked this question nearly every time they meet with establishment owners in the hospitality industry.
So what is it about processing that makes so many owners feel stuck? Think of it this way: guests aren’t concerned with swipe fees when they’re closing out a bar tab (or four) in a single visit. These fees can quickly add up and establishments can end up losing more and more money while having very little control over it.
Understandably, we recognize why this question is a constant in meetings. Processing fees can add up to thousands of dollars a month and it’s imperative that no additional funds get lost to processing fees if possible.
As a financial technology company (“FinTech” for the trendy among us), we are quite sympathetic towards the aggravation caused by these seemingly unavoidable processing fees. Which is why, aside from matching our locations’ current processing rates, Rooam has engineered our technology to decrease overall fees by eliminating the need for users to close out multiple tabs in a single visit.
How It Works:
The User Side
Four simple words: No credit card interaction. With Rooam, guests can add a credit/debit card into the app — similar to Uber and Venmo — and all payments for their order can be made through their phone. At no point is a credit card exchanged with an establishment nor is the user’s card info shared with the merchant — this is how we provide EMV-level protection and are certified PCI compliant.
That uneasy feeling of leaving your card at the bar with a stranger, or even worse, forgetting it at the bar altogether (we’ve all been there), is no longer a worry. Therefore, once a tab is open with Rooam, there is no need to close out and start a new tab.
“Used (Rooam) for the first time at The Anthem in DC last night. So amazing!! Much easier and faster than carrying a tab or paying as you go. Brilliant!!!” -Michelle P.
The Establishment Side
With restaurants and bars, the aforementioned user benefits are often sufficient in decreasing the number of swipes per guest. However, since expanding to music venues, music festivals, and nightclubs, we’ve recognized that the impact on the cash outflow for processing fees has been transformative.
Dealing with such large capacities of people, these venues have to have numerous bars in order to be able to serve everyone. The process of keeping track of credit cards, names, and which bars people have interacted with is nearly impossible, and that is where Rooam comes into play.
Rooam provides an easy and efficient way for guests to keep just one tab open. To order, Rooam users can simply give their unique tab number to the bartender at any bar within the venue. All the bartender needs to do is enter that number into the POS system, enter the items ordered, and press send. The item(s) are instantly added to the guest’s ongoing tab and the bartenders are done with the transaction.
The real game changer is the bartenders’ ability to access Rooam tabs on any terminal and complete a transaction without the exchange of a card or receipt. Guests can now use their tab freely at a venue and close their tab out wherever they want, greatly reducing the need for additional tabs. As a result, the amount spent on processing per night, month, and year has dramatically decreased! Venues like Sound Nightclub, and U Street Music Hall have Rooam playing a crucial role in their payment process. While IMP Concerts, based in Washington, DC has even made Rooam the sole way to have a bar tab open at their concert venues: The Anthem, 9:30 Club, and Lincoln Theatre!
To Sum it All Up…
processing is a sector of great opportunity within the hospitality industry. Companies like Shift4 have acquired major POS players like POSitouch, Restaurant Manager, and Future, while POS companies like Toast and Square have combined processing and point of sale hardware into their software — both scenarios en route to streamlining the system for their clients. So yes, processing options are improving, however, Rooam is a great tool to combat additional fees when getting a lower processing rate is not an option.
