E-Seek Scanning ID

Preventing Chargebacks Using the E-Seek M280

A chargeback is a reversal of funds after a customer has disputed a transaction with the credit card company. In a recent survey of our bar and nightclub customers, chargebacks were identified as one of their top pain points

Reasons for Chargebacks At Bars & Nightclubs

There are a number of factors that can lead to chargebacks, and most of them are preventable. 

Billing Errors

Billing errors are one of the factors that can lead to a chargeback, and are typically caused by human error. 

Unresolved Customer Complaints

This is another factor that often comes down to human error and negligence. After concerns are raised by a customer, it then becomes up to the business to resolve the issue and act accordingly. But, when this doesn’t happen, customers again can choose to refute the charge with their credit card company.

Unauthorized Transactions

The most serious cause of chargebacks is related to fraud. Whether a person loses their card, or has it stolen, they are often unaware of the loss until they see fraudulent charges on their credit card. In this case, a person will put a hold on their credit card and dispute all transactions that they do not recognize. 

Purchase Regret

However, the largest reason for chargebacks in the nightlife industry is often morning-after remorse. Customers simply wake up and regret spending as much as they did. They then try to dispute the charge by saying their card was stolen or used fraudulently. This is known as chargeback fraud. One study in 2017 estimated that US businesses experienced more than $4B in chargeback fraud that year. Bars and nightclubs are particularly prone to becoming victims of chargeback fraud because customers are often drinking and enjoying themselves when they make the initial purchase.

Large, popular venues can see as much as $30,000 in a single weekend. Not only are these chargebacks a tremendous blow to their bottom line, the dispute process is time consuming and difficult. Even a successfully disputed chargeback can cost the business a large amount in fees. So, instead of trying to mitigate the damage after the fact, the ideal solution is to prevent chargebacks before they happen.

Bars, nightclubs, gentleman’s clubs and other venues can easily prevent chargeback fraud by using the E-Seek M280 scanner.

How to Prevent Chargebacks Using an ID Scanner

The E-Seek M280 is a unique scanner because it is multipurpose. Not only can it scan IDs, but it can also scan other documents that fit on the flatbed portion of the device. Any documents of importance can be scanned and saved under a specific customer profile using the combination of the M-280 and VeriScan visitor management platform. 

This outcome is achieved in a few very simple steps, all of which start with the scan of a barcode. First, you scan the ID’s barcode in the barcode slot of the E-Seek M280. 

Then, you simply place the ID of the customer on the flatbed of the scanner with the barcode facing down, then press the green button. 

Then, flip the ID over where the picture of the customer is facing down and press the green button again. 

Then, anything else that you wish to scan like receipts, credit cards, insurance cards, etc. just get placed on the flatbed and you just press the green button to capture the image each time. Anything that can fit within the parameters of the flatbed will be scanned and saved to the ID that was scanned initially. *It is crucial to note that the BARCODE of the ID must ALWAYS be scanned FIRST!

Many of our nightclub customers have been using this method to attach signed receipts to the customer profile. By scanning the ID, then scanning the signed receipt, they have iron-clad proof that the individual authorized the purchase. When the customer tries to attempt a chargeback, the venue simply exports this customer profile information showing the ID and the signed receipt – bam! Banks are required to turn down the customer’s chargeback request in the face of such clear evidence of a legitimate purchase.

How Does the E-Seek M280 Prevent Chargebacks?

By following the steps above, it allows you to create a dynamic visitor profile to ensure that your company minimizes the amount of chargebacks filed. But how? By capturing images of various items, it allows you to compare the signature on key items such as the ID versus receipts in question or any other document that could prove a customer was at your establishment, thus mitigating the damage and amount of chargebacks filed. 

To learn more about how the E-Seek M280 or VeriScan software can help your business prevent fraud, be sure to contact one of our industry experts.