How Grubhub Handles Payments: What Restaurants and Customers Need to Know
How Grubhub processes money from orders to your account
Grubhub moves money in two directions: customers pay Grubhub, and Grubhub pays restaurants. For restaurants, Grubhub deposits earnings into a bank account you designate during setup—usually twice a week, though the exact schedule depends on your bank and Grubhub's processing cycle. For customers, Grubhub accepts credit cards, debit cards, digital wallets, and sometimes cash on delivery, depending on what the restaurant allows and what your region supports.
The payment flow is not instantaneous. When a customer places an order, Grubhub holds the payment until the restaurant confirms the order is complete. For restaurants, the money you receive is the order total minus Grubhub's commission (which varies by contract, typically 15–30%), any delivery fees you've agreed to cover, and any promotional discounts Grubhub applied. You see the breakdown in your Grubhub for Restaurants dashboard before money hits your account.
Grubhub uses third-party payment processors to handle the actual transaction—they don't hold the money themselves. This means your bank details are encrypted and passed to a processor, not stored on Grubhub's servers. The same applies to customer payment information: Grubhub collects it but routes it through PCI-compliant processors so Grubhub never sees your full card number.
Key Takeaways
- Grubhub deposits restaurant earnings twice weekly to the bank account you register, minus commission and agreed-upon fees.
- Customers can pay with credit cards, debit cards, digital wallets (Apple Pay, Google Pay), and sometimes cash, depending on the restaurant's settings and your location.
- Payment information for both restaurants and customers is processed by third-party payment processors, not stored directly by Grubhub.
- Restaurant payouts appear in your Grubhub dashboard with a full breakdown of the order total, commission, fees, and net deposit before the money reaches your bank.
- Delivery orders and pickup orders may have different payment processing timelines, and some restaurants can set custom payment terms through Grubhub's merchant settings.
Payment methods customers can use on Grubhub
Grubhub's customer payment options vary by region and restaurant. The most common methods are credit cards (Visa, Mastercard, American Express, Discover) and debit cards linked to a checking account. Digital wallets—Apple Pay, Google Pay, and PayPal—are also widely supported and often process faster because the payment information is already tokenized on your phone.
Some restaurants and regions support cash on delivery, meaning the customer pays the driver when food arrives. Grubhub handles the cash collection and deposits it to the restaurant's account separately, usually within one to two business days. Not all restaurants offer this option, and it's typically available only in certain cities.
Grubhub+ members (a paid subscription service) can use their membership balance or linked payment method. Gift cards purchased through Grubhub can also be used as payment, though they must be added to an account before checkout. If a payment method fails during checkout, Grubhub prompts the customer to enter a different one—the order does not proceed until payment is confirmed.
How restaurants receive payouts and what gets deducted
When you sign up as a Grubhub restaurant partner, you provide bank details for direct deposit. Grubhub then deposits your earnings on a schedule you can view in your merchant dashboard—most restaurants receive deposits twice per week, though some may see weekly or daily deposits depending on their contract and processing bank.
The amount you receive is calculated as: order total minus Grubhub's commission, minus any delivery fees you've agreed to cover, minus any promotional discounts Grubhub applied to the order. Grubhub displays this breakdown in real time in your dashboard, so you can see exactly what you're earning from each order before the money deposits. If a customer cancels after payment, Grubhub refunds the customer and adjusts your payout accordingly—you won't receive money for an order that was cancelled.
Chargebacks and payment disputes are handled between Grubhub and the customer's bank, not directly with you. If a customer disputes a charge, Grubhub investigates and either refunds the customer or upholds the charge. If a chargeback results in a refund, Grubhub deducts that amount from a future payout to your account.
Differences between delivery orders and pickup orders
Delivery orders and pickup orders follow slightly different payment paths. For delivery orders, the customer pays Grubhub upfront, and Grubhub holds the payment until the driver confirms delivery is complete. For pickup orders, payment is also collected upfront, but there's no delivery step—the customer simply picks up the food at your location.
From a restaurant's perspective, both types of orders appear in your dashboard and deposit to your account on the same schedule. The commission structure may differ slightly depending on your contract: delivery orders sometimes carry a higher commission because Grubhub is coordinating a driver, while pickup orders may have a lower commission since Grubhub is only providing the platform.
Pickup orders can also be paid in cash at your restaurant if you've enabled that option in your merchant settings. When a customer chooses cash pickup, Grubhub still processes the order but flags it as cash-on-collection. You collect the cash from the customer, and Grubhub deposits the amount to your account after you confirm the order was completed.
Security and fraud protection for payments
Grubhub uses encryption and tokenization to protect payment information. When a customer enters their card details, that information is encrypted immediately and sent to a PCI-compliant payment processor—Grubhub itself never stores the full card number. The same applies to restaurants: your bank details are encrypted and passed to the processor that handles deposits.
For customers, Grubhub offers dispute resolution through your card issuer or bank. If you notice a charge you didn't authorize, you can dispute it with your bank, and your bank will investigate. Grubhub also has a customer support team that can help trace unauthorized orders, though the formal dispute process runs through your bank.
For restaurants, Grubhub monitors for fraudulent orders—orders placed with stolen payment information or from accounts with a history of chargebacks. If Grubhub detects fraud, it may hold the payout or flag the order for review before depositing money to your account. You can report suspicious activity to Grubhub's merchant support team, and they will investigate.
What happens when a payment fails or a customer disputes a charge
If a customer's payment method is declined at checkout, Grubhub prompts them to enter a different payment method before the order is confirmed. No order is placed, and no money moves, until payment is successfully processed. If the customer doesn't provide a valid payment method, the order is cancelled automatically.
If a customer disputes a charge after the order is complete, the dispute goes to their bank or card issuer, not directly to you as the restaurant. Grubhub receives a chargeback notice from the bank and investigates by reviewing the order details, delivery confirmation, and customer communication. If the bank rules in the customer's favor, Grubhub refunds the customer and deducts the amount from a future payout to your restaurant account.
Chargebacks can happen for several reasons: the customer claims they never received the order, the order arrived damaged, or the customer disputes the charge as unauthorized. Grubhub keeps records of delivery confirmations and customer ratings, which help defend against false chargebacks. If you believe a chargeback is invalid, you can contact Grubhub's merchant support with evidence—photos, delivery timestamps, or customer communication—to contest it.
Setting up and managing payment methods in your Grubhub account
For restaurants, payment setup happens during onboarding. You provide your bank's routing number and account number, and Grubhub verifies the account by depositing two small amounts (usually under $1 each) and asking you to confirm the amounts. Once verified, deposits begin on your scheduled payout day.
You can change your bank account in your Grubhub for Restaurants dashboard under Settings or Account. If you update your account, Grubhub may require re-verification before deposits resume. During the verification period, payouts may be held or delayed, so plan ahead if you're switching banks.
For customers, payment methods are managed in your Grubhub account under Payment Methods or Wallet. You can add, remove, or set a default payment method. Grubhub stores tokenized versions of your cards, so you don't have to re-enter full details on every order. You can also set spending limits or restrict certain payment methods if you want to control how your account is used.
Frequently Asked Questions
How long does it take for Grubhub to deposit money to my restaurant account?
Most restaurants receive deposits twice per week, though the exact timing depends on your bank and Grubhub's processing schedule. Deposits typically appear in your account one to two business days after Grubhub initiates the transfer. You can view your payout schedule in your Grubhub for Restaurants dashboard under Payouts or Finances.
Can I use a prepaid card or gift card to pay on Grubhub?
Prepaid cards work like regular debit cards at checkout. Grubhub gift cards can be used if you add them to your account balance first—you can't enter a gift card number directly at checkout. Some prepaid cards may be declined if they don't support online transactions, so check with your card issuer if you run into problems.
What if a customer paid cash but didn't leave enough money?
If a customer pays cash on delivery and the amount is short, you can refuse the order and contact Grubhub's support team. Grubhub will reach out to the customer to resolve the payment. You should not complete the delivery if payment is incomplete—mark the order as unpaid in your dashboard so Grubhub knows the issue.
Do I have to accept all payment methods Grubhub offers?
No. In your Grubhub for Restaurants settings, you can disable specific payment methods or restrict cash on delivery to certain hours or locations. You can also set a minimum order value for certain payment types. Changes take effect immediately and are reflected on the customer-facing menu.
What happens if Grubhub's payment processor goes down?
If Grubhub's payment system is unavailable, customers cannot place orders through the app or website. Grubhub's technical team works to restore service as quickly as possible. During an outage, you should not accept orders through Grubhub directly—wait until the system is back online. Grubhub publishes status updates on their system status page if outages are widespread.