Olo Pay Enables Lucille's to Combat Credit Card Fraud
Lucille’s Smokehouse Bar-B-Que offers award-winning barbecue and savory Southern-style food at its 21 full-service restaurants throughout California, Arizona, and Nevada. Prior to adopting Olo Pay, online credit card fraud was the brand’s biggest pain point. Since implementing our restaurant payment stack, Lucille’s has seen its authorization rate soar and dispute rate plummet. Olo Pay has blocked nearly 6K high-risk orders and the brand is paying $15 less per chargeback.
LINKS
12.39%
Increase in authorization rate
36%
reduction in chargeback costs
$1.1M
in potentially fraudulent orders prevented
Background
Lucille’s and Olo teamed up in the fourth quarter of 2020 to implement a convenient, high-quality online ordering and delivery service, just in time for the busy holiday season. Since then, the brand has added Olo Pay, Ordering, Host, Marketing, Sentiment, Dispatch, and Rails to its restaurant tech stack to make guest-focused, data-based decisions to maximize revenue and growth.
Before adopting Olo Pay in June 2022, Lucille’s didn’t have an effective way to mitigate fraud risk other than requiring restaurant team members to manually verify credit cards and guest IDs. So when scammers started targeting the brand, 3.5% of every Lucille’s online order was going to chargebacks.
In order to safeguard its digital business and maximize revenue, the brand knew it needed a comprehensive payment platform with advanced fraud protection specifically built for restaurants. With Olo Pay, Lucille’s can now effectively prevent fraudulent orders and handle chargebacks—without the burden of managing it all in-house.
Results with Olo
01
FEWER FRAUDULENT ORDERS AND CHARGEBACKS
02
MORE RESTAURANT REVENUE
03
STREAMLINED MANAGEMENT AND LABOR SAVINGS
Prior to Olo Pay, online credit card fraud was by and large the biggest pain point we had that we didn’t have an answer to. Three and a half percent of every online order was going to chargebacks—that’s insane. With Olo Pay, we no longer have to manage our fraud prevention in-house. It’s mostly hands-off, which saves us labor hours and we can take more revenue to the bank.
Bruce Gallion, Director of Analytics and Systems Integrations
Lucille’s Smokehouse Bar-B-Que
More customer success
Din Tai Fung
Borderless Checkout Boosts Order Frequency and Guest Sign-Ins for Chinese Restaurant Brand
Read case study