Case Studies

Customer call · Anonymous case story

Why Did This Restaurant's Card Processing Rate Change?

Separate owner conversation · Captions are burned into the supplied clip.

Scope limitThese are rounded rates discussed on a call. The clip does not prove a negotiated reduction, an overcharge or a refund. The clip's 0.41% refers to 41 basis points, or 0.41 percentage points, rather than a 0.41% relative change.

Direct answer

What to check

Use the same fee definition and sales basis when comparing statements. Check card mix and one-time charges before attributing the change to pricing.

Method

How to check it in your operation

Use the same fee definition and sales basis for both periods. Compare statements, card mix and one-time charges before attributing the change to pricing.

Call observation

What the conversation covers

The call compares a processing rate of about 2.8% in January with about 2.4% later. The owner raises card mix as a possible explanation, then says he does not have an explanation.

Related guide

Restaurant cash reconciliation

Full transcript

Source transcript · Episode 13

Transcript from the supplied clip. Repeated openings retained; redactions and unclear speech marked.

I don't have an explanation for that. It looks like you were at about a 2.8 in January, and it's come down quite a bit to about 2.4%. But that 41 bps is intriguing 'cause you can see, like, in July it goes up. I imagine it's just seasonality to certain corporate cards or something like that, like a corporate... But I, yeah, I don't have an explanation for that. Certainly I'd like to have that 0.41%.

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