Last updated on March 19th, 2024 at 03:34 pm

This article on preventing chargebacks was updated on June 6, 2023.

You’ve experienced it before.  A customer comes to your nightclub, spends a lot of money, and a week later issues a chargeback through their credit card company.  This phenomenon is a result of something called “buyer’s remorse”, and it affects thousands of clubs all over the country on a weekly basis. 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.

Chargebacks are costly, but they don’t have to hurt your club.  With our new system, preventing chargebacks are a thing of the past.  Stop “buyer’s remorse” and start fighting chargebacks.

How to use ID scanning to protect against chargeback fraud

Chargebacks directly hurt your business’s bottom line and lead to a significant loss on your books.  With chargebacks becoming a frequent occurrence in the nightclub industry, how do we protect ourselves from these costly transactions?

Scan, verify, and record the customers’ drivers licenses – Using our VeriScan software scan and validate your customers’ IDs, recording all of the contained data in a CSV log.

Use mobile solutions to eliminate buyers’ hesitance – VeriScan Online has a suite of mobile apps to allow for signature capture and ID scanning on the go, eliminating buyer hesitance associated with kiosk identification. If you can go to the customer rather than demanding the customer come to you, it’s far more likely that he or she will remain comfortable, relaxed, and willing to spend money on your products and services.

Timestamp your ID swipes – ID scans are timestamped so that they may be matched with credit card processes, proving that the patron in question was at the establishment during the time and credit card process in question.

Record biometrics – The more customer information you provide to credit card companies, the easier preventing chargeback claims becomes. With VeriScan Online’s custom waiver feature you can create an agreement or waiver on the portal and have your patrons sign it using an iPad or connected signature pad device.

Photo capture the patrons’ IDs – VeriScan Online now allows for the capture of 3 saved images to the cloud.  These images can be of the patron in question, a hard copy of the ID, or any other identifying documents. They are all saved to the cloud and linked to the ID scan of your patron for immediate review.

Here at IDScan.net, we have developed a fully integrated system that helps you keep track of visitors and prove that they were on your premises. Not only does this system perform age verification and fake ID detection, it also allows you to capture rich data, including scanned receipts, that can help your club fight chargeback fraud, and provide proof of purchase on high-value items.

Preventing chargeback fraud using the E-Seek M280 ID scanner

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 information to protect themselves from fraud by preventing chargebacks.  The system is also fast and efficient, which allows them to deliver an extremely high level of customer service with an excellent customer experience.

Many of our customers have championed that the major benefit of VeriScan and the E-Seek M280 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 person, and an image of their driver’s license and credit card. The M280 is ideal because its flatbed surface allows for adding any type of image to the customer record, and 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.

We also integrated fingerprinting and electronic signature as an additional level of security to guarantee that our bar & nightclub customers will have ample evidence in every chargeback disputer.

For more information, please visit the VeriScan Plus and M-280 Product Page.