Fake ID detection startup, IDScan.net finds venue security, chargebacks top technology concerns for bars & nightclubs

Back of a bouncer's shirt that says "Security"

Some high traffic nightclubs are losing as much as $30,000 a month due to chargebacks. ID scanning systems identified as key technology to keep clubs safe and prevent multiple types of fraud.


Bars and nightclubs are in full rebound mode, and their priorities and challenges have shifted to accommodate a new reality. That reality includes staffing shortages, higher costs on goods, and higher rents. However, other challenges can be combatted with sophisticated tech. Bars, pubs, and nightclubs are investing more than ever in two key areas: security and chargeback prevention.

Keeping venues safe

Violence and nightlife have always been inextricably linked. In Atlanta, more than ⅓ of all homicides occur outside bars and nightclubs. Amid police shortages, bar and club owners are increasingly looking for solutions to keep their staff and guests safe. Studies have shown that the mere presence of ID scanners can reduce violence by up to 58%.

“ID scanning is not just good practice to deter potential troublemakers, but also to manage banned lists. If a guest harasses anyone or gets into a fight we can flag them immediately. Then if they try to re-enter, security will get an instant alert,” said IDScan.net CEO, Denis Petrov.

Combatting chargeback fraud

Patrons who wake up ashamed for overspending often use chargebacks as an attempt to claw back weekend charges they regret. The owner of a major, urban nightclub, who asked to remain anonymous, sheepishly admitted that they had experienced more than $32,000 in chargebacks in a single summer weekend.

Nightclubs and gentlemen’s clubs are at a much higher risk for chargeback fraud due to the high cost of purchases such as bottle service and private dances. Each chargeback requires the merchant to provide proof of dispute, typically in the form of copies of receipts. But some clubs are utilizing a new piece of evidence in their fight against chargebacks: ID scan logs.

Clubs that scan IDs at the door have a built-in audit trail that proves who was at the venue on a particular night. Some clubs are even scanning copies of signed receipts into their visitor management system. Together, this evidence is helping them win their disputes against more than 90% of attempted chargebacks.

The future of nightlife technology

Integrated technology systems are the key to successful, profitable nightlife operations. Cohesive systems that capture guest identity and payment information are crucial to providing a wraparound, safe experience, and protecting your venue from security risk. ID Scanning for Bars & Nightclubs can provide a key first line of defense in more secure venue operations.

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