Not all “rate reviews” are created equal

A restaurant I recently worked with thought they were in great shape. In December, they negotiated their own processing rates and signed a 36-month extension. They were confident the problem was solved, so when I asked to review their statements, they reluctantly agreed because they already knew they were “good.”

Except they weren’t.

When I dug in, there was still over 1% in markup from their processor. That’s a lot. After a quick phone call to their provider, I got the usual pushback:

“We just did a review.”
“Trust me, they have great rates now.”

But I kept pushing. And after a few minutes, they reduced the rate another 0.50%, getting this business to a much more competitive number.

That’s the difference between doing it yourself and having an advocate who knows how this industry works.

In this case, the business had their manager handle the negotiation. The manager had zero experience with credit card processing and went in with the “I feel like we’re paying too much” tactic. Any reduction felt like a win, without having any idea what was actually fair.

It’s like sending your 16-year-old son to a car dealership alone to buy a new car…

He walks in, wide-eyed, excited about the thought of driving something shiny off the lot. The salesperson quickly figures out they’re dealing with a rookie and starts working the angles: monthly payment talk, “special” warranties, “only good today” deals. Your son might feel like he’s doing great just because they knocked a little off the sticker price.

Meanwhile, Uncle Marty, who spent 15 years running a dealership and knows every trick in the book, is sitting at home, coffee in hand, waiting for the call. Marty knows how to see past the smoke and mirrors, negotiate from the real numbers, and get a deal that’s actually fair. But your son never called him, so he drives away thinking he won… without realizing he just overpaid by thousands.

That’s exactly what happens when you try to renegotiate your processing rates without someone who’s been in the trenches.

The truth is, processors aren’t in the business of lowering your rates out of kindness. Their job is to keep margins high, even after a “review.” My job is to make sure they can’t get away with it.