Last updated on August 5th, 2024 at 12:35 pm
Bar and club operators, if you are not taking advantage of the benefits of ID scanning, you are hurting your bottom line.
ID scanners provide obvious benefits such as ID authentication (catching fake IDs) and performing age verification. But there are many other key benefits to using an ID scanning and visitor management system in your establishment. Below are 7 key benefits to ID scanning for bars and nightclubs.
1. Protect your bar or club against chargeback fraud
Chargeback fraud is predicted to jump 40% in 2024, indicating a concerning upward trend.
“Friendly fraud” is common for nightlife venues: a customer comes to your nightclub, spends a lot of money, and a week later issues a chargeback through their credit card company.
In 2023, we surveyed our bar and nightclub customer base and chargeback fraud was identified as a major concern for busy nightclubs. One customer told us they were experiencing as much as $30,000 every weekend in chargeback fraud related to lap dances and bottle service at their Las Vegas nightclub. ID scanning provides a powerful tool for combatting this type of chargeback.
How to use ID scanning to protect against chargeback fraud
Scanning each guest’s ID upon entry creates a verifiable record that the individual was on-site. With VeriScan, their entrance to the venue is timestamped, and their visit history can be easily exported. Using an image capture device you can quickly capture an image of their ID, saved securely to VeriScan Cloud.
As an extra precaution you can additionally add a waiver or signature that each guest signs, providing additional evidence that they entered the premises. Or use a webcam to capture an image of the guest when their ID is scanned, adding the image of them at the point of entry to their visit record. Webcams can be easily integrated into VeriScan for Windows, and face matching can even be used to match the customer’s face to the face on their ID photo.
Adding receipts and signatures to their visit record to prevent chargeback fraud
The E-Seek M280 ID scanner offers the ability to capture additional documents such as signed receipts, which can provide further evidence for disputing cases of chargeback fraud. Crazy Horse III in Las Vegas found VeriScan and the E-Seek M280 ID scanner to have an immediate impact on their club’s operations. By utilizing it at the VIP section of their club, Crazy Horse III is able to quickly capture all of the customer’s credentials, and a signed receipt, and prove that high value items such as bottle service were approved and paid for by the credit card holder. The system is also fast and efficient, which allows them to deliver an extremely high level of customer service with an excellent customer experience.
The key benefit of using the E-Seek M280 with VeriScan for Windows is the ability to capture three forms of identification in fewer than 5 seconds – customer information (name, age, gender, address, etc.), a picture of the customer, and an image of their driver’s license and credit card. The easy push-button interface ensures that the image will attach to the customer record associated with the last ID scanned. The image is timestamped, which creates an airtight record of when the purchase was made.
2. Catch fake IDs to keep minors out and protect your business license
More than 40% of college students say they have used a fake ID. And they are most commonly used to gain entrance to bars, nightclubs, or other age restricted venues, so nightlife businesses need to remain extra vigilant to the use of fake IDs. While a typical bar sees around 0.33% of IDs scanned as being fake, this number rises to as high as 12% for bars near colleges and universities.
Catching fake IDs should be a top priority for any bar or club to ensure they don’t have fines or suspensions associated with selling to a minor. The vast majority of new fake IDs are quite sophisticated and cannot be detected with the naked eye. Most even have ultraviolet markings that will show up when under a small blacklight, so typical methods of visual inspection are not sufficient to catch sophisticated, modern fake IDs.
ID scanners capable of catching 95% of fake IDs
These scanners are capable of ID authentication to provide the highest level of protection against fake IDs.
VeriScan provides 2 layers of fake ID detection. The first is rapid, AI-driven analysis of the 2D barcode on the back of the ID. This is built into all of our products and can detect fake IDs which have anomalies in the barcode formatting. Deeper fake detection requires use of an ID scanner capable of ID authentication, which requires scanning under multiple light wavelengths, and high-resolution image analysis.
All ID scanners will also be capable of flagging underage IDs and expired IDs, to ensure everyone entering your bar or nightclub is of-age and using a legitimate identity document, keeping your license safe and your team free from fines or legal action.
3. Speed up your entrance lines & un-burden your bouncers
Because fake IDs are becoming increasingly sophisticated, manual ID inspection can take time, even if your security staff is using tools like a handheld blacklight. On busy nights, your security team might be inspecting thousands of IDs. If they suspect an ID is fake they will end up spending valuable seconds comparing the customer to their ID photo, asking them challenge questions such as “what is your zip code?” or “what is your zodiac sign?” This can slow down your entry lines and keep customers from getting inside where they can begin enjoying themselves and spending money.
Using a fast, accurate ID scanner, or a mobile ID scanner can greatly speed up your entrance process. Handheld ID scanners can rapidly scan IDs and passports, be used across multiple entrances (all syncing to a centralized database), and take the guesswork out of your bouncers’ hands. They also allow you to easily track how many guests have entered and are inside at any given time, to better control the flow of guests in your venue without relying on manual counts.
It also takes the mental burden off your bouncers – they don’t have to decide whose ID to inspect, or make judgment calls when an ID is “iffy.” Your security team can instead focus on keeping your guests and employees safe, not arguing with underage patrons who are trying to convince your doorman that their ID is real.
4. ID scanning greatly improves venue security
A study of Atlanta nightclubs showed that the mere presence of an ID scanner at the door of a club was associated with a 56% decrease in security incidents.
Deterring criminal behavior with the presence of an ID scanner
Simply, criminals and troublemakers don’t want to have their identity recorded at a location where they plan to make trouble. They will move on to a more lax location where they can escape detection. Many nightlife districts have grants in place to help bars and clubs purchase ID scanners for the express purpose of helping to deter crime across whole business districts. In Western Australia, their NightsOut program even shares patrons who have been 86’d from one venue between venues, resulting in the individual getting a 30-day ban across all bars and nightclubs in the entire state.
Managing Banned lists to keep repeat offenders out using an ID scanner
In addition to simply deterring criminals from ever visiting your bar, you can use VeriScan to manage your own Banned lists to keep problem patrons out.
Problem patrons can be added to a Banned list from the handheld device where they were scanned, or after the incident inside the VeriScan Cloud portal. You can also set expiration dates for various Banned lists, allowing you to have 30-day bans, and lifetime bans. When a patron who appears on your Banned List has their ID scanned, your team can get an immediate alert via email or SMS, allowing your staff time to notify the security team or authorities. Banned lists are shared between all your devices, which means a rowdy guest at one end of the club, banned on one device, will immediately be added to the shared list, so your other entrances are aware if they try to re-enter.
Staff can easily add notes to any guest profile, detailing why they were banned (chargebacks, fighting, weapons, etc.) so your team has access to the most up-to-date information.
Visual history to aid in law enforcement investigations
The ability to look up our past patrons’ photos has been crucial when collaborating with law enforcement after an incident at our club. It made it so easy to identify the person of interest and get their visit history to the police. – Denver Players Club
VeriScan for Windows now offers visual history when your bar is using an image capture device. This means that if you need to review last night’s patrons you can easily review all of their photos, rather than having to sort through all scanned IDs by name. This visual search is extremely helpful in the event of a law enforcement incident, as it allows for your team to spot the troublesome patron visually, when they may not necessarily remember the individual’s name. The photo can also be matched to security footage.
5. Better manage your VIP customers with ID scanning & visitor management
Similar to Banned Lists, VeriScan also offers the ability to create VIP or Loyal Customer lists, so your entire team can be notified the second one of your best customers arrives onsite. This allows you to provide top-quality service and ensure they keep returning again and again. Your team can add notes such as “spent $5,000 on bottle service” or “bought the whole bar drinks” to visitor profiles, so that your team can ensure these top customers have an even better experience on their next visit. Your team can be notified discretely via SMS or email, so they can up their game without having to talk amongst themselves.
Identify potential VIPs with our Gold Zip Codes feature
You can even be notified of potential VIPs. Did you know that using the Gold Zip Codes feature in VeriScan you can set up alerts whenever an individual from a top 100 zip code has their ID scanned? This allows your team to activate and treat the new patron as a potential high roller, even if they haven’t visited your establishment in the past.
Enroll customers into loyalty programs and marketing campaigns
By adding waivers that can capture customer email and phone number, you can enroll your best customers into your marketing campaigns with ease. Since the information is populated from the scanned ID, you know it will be 100% accurate, and it is tied to their visit history at your nightclub so you can easily see the impact of your marketing activities.
6. Use ID scanning to gather valuable demographic reports
With VeriScan you are capturing data from every ID that is scanned at the entrance, and parsing data fields such as name, address, date of birth, gender, and more. Now you can use this data to make better decisions about your bar or club simply by accessing the reports inside VeriScan Cloud.
With applications like VeriScan, bar & club managers & owners can gain valuable insight into their patrons, answering questions like:
- What zip code are the majority of the patrons coming from? This can help inform better targeted advertising.
- What time of day is busiest? Help right-size your staffing by ensuring you know the exact time your guests start arriving.
- How does the demographic mix change on various days of the week? Learn which night is best for Ladies Night, and which days you may need to turn on a sports package.
- What is the average age of my customers by time of day?
- What days of the year am I at the highest risk of fake IDs?
This demographic data is easily accessible and can help your bar or club make crucial staffing, marketing, and operational decisions, just by analyzing the data of your existing customers.
7. ID scanning for affirmative defense
Many states allow reduced liability for serving a minor if you are using an ID scanner.
In 12 states, use of an electronic ID scanner is an affirmative defense. This means that if you can prove you scanned the guest’s ID, even if they turn out to have used a fake ID, or are actually underage, your business is not liable for damages related to DUI, overconsumption, etc.
By implementing an ID scanning system, establishments can establish a robust defense against liability claims arising from incidents involving patrons. When a customer’s identification is scanned upon entry, vital information such as name, date of birth, and a digital record of entry time is securely captured and stored. In the unfortunate event of an altercation or legal issue within the premises, this detailed record can serve as affirmative defense evidence. By demonstrating that the establishment took reasonable measures to verify the age and identity of patrons, businesses can strengthen their position and potentially mitigate liability. The use of an ID scanner for affirmative defense not only helps protect businesses from false claims but also promotes a safer environment by deterring fraudulent behavior and providing a reliable means of accountability.
Why your bar or club needs an ID scanner
IDScan.net’s VeriScan can help your bar or nightclub realize the benefits of ID scanning for improved security, detection of fake IDs, affirmative defense laws, better reporting, and better defense against chargeback fraud. ID scanning also improves speed of entry and removes the burden of manual ID inspection from your bouncers.
We’re confident your bar, club, or venue will love the benefits of VeriScan.
