Ask HN: Why hasn't anyone disrupted the restaurant credit card payment process? | Hacker News Reader

Ask HN: Why hasn't anyone disrupted the restaurant credit card payment process?

4 pointsjc_8118 comments

Every time I eat out at a restaurant and pay with a card (or when there are multiple people paying with card) I can't help but think how outdated/inefficient the process is.

1.) The bill is dropped off at the table, server leaves 2.) I place my card in the bill, and wait until the server comes back 3.) Server returns, grabs the card, leaves, and runs the transaction (with my CC out of my sight the entire time) 4.) Server returns AGAIN to drop off the receipt where I need to sign and leave a tip

This just seems like a process that hasn't changed for decades. It takes time, and opens up so many avenues of human error (eg server takes a long time during steps 2 and/or 3 while I am in a rush, malicious staff has time to grab my CC#, etc. In my opinion a great system would be:

1.) Bill arrives at the table with a code at the top (eg bill #3fh556) 2.) Customer can open an app, plug in the code, see the whole bill, and instantly pay right then and there with card that is linked to the app 3.) Would also easily let multiple people split a bill down the middle, or only choose & pay for what you ordered 4.) Restaurant has some sort of POS integration that has a list of tables with a 'red' icon for tables that haven't paid yet, and a 'green' icon for tables that have paid.

I suppose it's because the restaurant industry is very averse to change (if it's working, don't change it) and the fact that there are multiple POS systems in play.

However, in my mind I feel like this would be a game-changer and any restaurant that does this consumers would love.

Would love to hear your thoughts on this..

I managed a restaurant that had pay at the table capabilities. All the servers had handheld tablets with the capability to scan cards and print receipts. There are also existing systems that allow for the customer to order and pay direct from table with minimal interaction from server (basically the server just brings food/drinks or answers questions).

The problem these solutions have not taken off is two-fold. First, as you said the restaurant industry is slow to adopt new technology. Margins are low on most food items so the expenditure on new technology can be a deal breaker. The bigger problem we ran into though was the equipment/software was buggy at times and would often result in longer delays. Also, servers would drop tablets, get them wet, and other non-intentional actions that would break the devices. Oddly, on occasion some customers were skeptical. They were used to the "old" way and when you present them with a machine to scan their card right in front of them they would hesitate as if you were trying to scam them.

While we didn't allow customers to do the process themselves, meaning we didn't leave our tablets at the table, I do know some places that do. From what I have heard, it can often lead to customers sitting longer. Once they feel they are in control of the entire ordering/payment process they no longer feel "rushed" by the server and tend to sit/talk longer. This leads to greater delays.

Great point in the last paragraph, that's something I hadn't considered. I suppose in the US with our heavy tip culture, having customers in & out is extremely important to servers. Having customers just hanging out at the table wouldn't be in their best interest.

I wonder if there would be some way to let the customer control the process, while still having them subconsciously feel "rushed" at the end with the desire to leave.

> I suppose in the US with our heavy tip culture, having customers in & out is extremely important to servers.

Irrespective of tip culture, it's important to restaurant owners; restaurant revenue is limited by prices, capacity, and the ability to turn tables. Peak flow (and thus mostly staffing requirements and staffing costs, since you have to be able to serve your peak flow, as, loosely, is space cost) is limited by capacity, so if you lose ability to turn tables, you are losing revenue without proportional reduction in costs. If people on average sit for 10% longer with similar orders, menu priced need to be more than 10% higher to compensate, and that's before considering lost unit sales to the price increase.

You could more simply do the most of the same things with optional-to-use credit card terminals at the table, which avoids the customer needing a smartphone or a particular app installed on it; there are places trialing these now. If you support the contactless payment systems, you get most of the user advantages of a smartphone app without actually having to develop an app or rely on customers adding their card to yet another payment app.

The main thing your version has I'd the status integration, but that means if the service ever has downtime, restaurants using it lose both the ability for people to pay with it and their tracking of who has paid.

> However, in my mind I feel like this would be a game-changer and any restaurant that does this consumers would love.

If you are a restaurant and you are going to force me to use an app to use a credit card, either:

(1) That app is Google Pay, or

(2) I'm not eating there unless I happen to have planned in advance to bring cash, which is an inconvenience that weighs against you.

> 2.) Customer can open an app,

This assumes that /every/ customer:

1) has an appropriate cell phone (i.e., ios and android apps are incompatible with each other's devices) 2) is willing to install said app

Both assumptions fall down when a customer arrives who:

1) has no cell phone or 2) is unwilling (due to privacy or other reasons) to install said app (I would fall into this category myself, I'm not /ever/ installing random restaurant X's app in order to make a payment) or 3) left their cell phone behind in car/office/at home, etc.

The current process works no matter the technical level (user or device) of the customer.

Definitely understand those limitations. I guess in my perfect world both systems would exists simultaneously until there was a critical mass years in the future and the old system was gradually faded out.

I pay cash at restaurants and many other people still use cash over credit cards. How would you integrate these patrons? Could I still leave my cash on the table and leave? What about people without smart phones (of whom there are still quite a few)? What happens if someone’s phone runs out of charge while at dinner? What happens when grandparent wants to take grandkid out for lunch and realizes s/he needs to download an app in order to pay? On a smartphone that s/he may not have? Or with a very limited data plan that won’t allow them to download the app at the restaurant?

I agree there is always room for improvement, but the system now isn’t so broken that it needs a technology driven “disruption” that you are describing.

I would personally not be interested in downloading yet another payment app with questionable security practices.

Exactly what problems need solving here? Cardholders aren't on the hook for fraud. If you are in a hurry, you can tell your server to provide the check with your food, and pay before you're done eating.

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