The short answer
Traditional restaurant flow authorises the bill amount, then adjusts it upward for the tip before settlement. If the adjusted amount exceeds tolerance or the batch closes late, the transaction can downgrade to a costlier interchange category. Pay-at-table with the tip captured at authorisation avoids it entirely.
Fix the batch timing first
Adjustments must be completed before batch close, and the batch should close daily. Late adjustments and stale batches are the two most common causes of restaurant downgrades.
Tip reporting flows into payroll
Choose a system that attributes tips per server and exports cleanly to payroll. Manual reconciliation of tips is where restaurant admin time disappears.
Key takeaways
- Pay-at-table avoids the adjustment downgrade entirely
- Complete adjustments before daily batch close
- Per-server tip attribution should export to payroll
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