This article was updated on June 13, 2023.

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 against chargeback fraud

Chargeback fraud increased by 41% from 2019 to 2020, indicating a concerning upward trend. By scanning IDs, the establishment can capture crucial customer information and create a digital record, including the date and time of entry. In the event of chargeback fraud, where a customer disputes a transaction claiming it was unauthorized, having a comprehensive record of the individual’s identification and entry can serve as compelling evidence to refute false claims. This technology provides a strong deterrent to fraudulent activities, enhances security measures, and helps protect the reputation and financial well-being of bars and nightclubs by reducing chargeback-related losses.

Additionally, by using an ID reader such as the E-Seek M280, bars and nightclubs can attach receipts and signatures to the timestamped customer record, giving you iron-clad proof when disputing chargebacks.

Read more in our comprehensive blog all about chargeback fraud >>

2. Demographic Reporting Information

With applications like VeriScan, bar & club managers & owners can gain valuable insight into their patrons. What zip code are the majority of the patrons coming from? What is the average age of a customer that comes in on Tuesdays at 7 pm? What time are most of my female patrons arriving at my club? VeriScan’s reports section gives you the answers to these questions and more. This demographic data is easily accessible and can help your bar or club make crucial staffing, marketing, and operational decisions.

3. Reduce Patron Wait Time

ID scanning automates the age verification process and makes it much easier to identify fake IDs. This takes a lot of burden off of your staff, and it will keep the lines moving, meaning more money that patrons will spend at your establishment. 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. Using a fast, accurate ID scanner, or a mobile ID scanner that can be used for line busting, can greatly speed up your entrance process.

4. Make life easier for your bouncers

With ID scanning your bouncers don’t need to remember state capitals or challenge questions like astrological signs – they can simply rely on the ID reader to do the valuable work of scanning and verifying the ID. 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.

5. Easily Identify VIPs

Do you want to receive a text or email notification of a VIP’s arrival or do you want your bouncer to be aware of when they arrive? Providing excellent service and paying extra attention to your VIP patrons will keep them coming back and will increase your bottom line. If your bouncer didn’t recognize the woman that spent $5,000 on bottle service or the guy that bought a whole round of  drinks for the bar after that winning touch down, your bottom line could be negatively impacted. Keep these kinds of clients happy as soon as they walk in the door.

6. Identify Potential High Rollers

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.

7. Catch banned patrons at the door

If you want  your bouncer to be alerted that a banned patron is trying to enter, they will receive a “Banned” notification as soon as the ID is scanned. Your Banned List will be shared across all of your businesses and across multiple entrances, so as soon as a patron is Banned your team will know to deny entry. 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.

8. ID scanning for affirmative defense

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.

Conclusion

IDScan.net’s VeriScan can help your business realize the benefits of ID scanning.

Shop now for IDScan.net nightclub and bar solutions, or call one of our specialists, at 888-430-8936 to help find the right solution for your bar or nightclub. We work with more than 5,000 age restricted businesses to keep minors out, catch fake IDs, and help them stay compliant.