Cutting Down on Credit Card Fraud

As your customers have become more reliant on cards and less on cash, they’ve become more vulnerable to credit card fraud. In 2014, 31.8 million Americans experienced credit card fraud at least once, three times the number that had been affected in 2013.

Cutting down on restaurant credit card fraud

Banks may try to ease the pain of compromised cards, but they can’t protect them from happening in the first place, and having to deal with the aftermath. It’s not just the consumer though, businesses also pay a price for fraud through increased processing fees and losing money on transactions from compromised cards. In addition, it can do a lot of damage to your reputation if someone leaves a Yelp review claiming their card was compromised at your restaurant.

How does someone’s credit card get hacked in the first place, especially when it hasn’t been lost or stolen?

The most common way is by skimming.

When thieves install a skimmer on an otherwise legitimate swiper, the device saves all the information of every card swiped. With all this data imported, it’s easy to use that card information for online shopping or even to make a physical fraudulent card.

Skimming devices aimed at chip transactions are already being detected out in the marketplace.

EMV chip technology has helped cut down on this type of fraud, but skimming devices aimed at chip transactions are already being detected out in the marketplace. Plus, even if a transaction at your restaurant is being processed through the chip, it only takes a second for an unscrupulous employee to swipe the card first and grab the data. The fewer hands in contact with a card, the less chance for fraud.

With the stakes high, and expensive, how about we just skip having to touch those cards at all, and embrace mobile payments?

The best way to keep fraudulent charges from happening at your restaurant is to avoid coming into contact with the card in the first place. Accepting mobile payments at your restaurant means that no credit card is ever changing hands. It stays safely in your customer’s wallet, and information stays protected, even if their phone were stolen.

Knowing that mobile payments are accepted, guests can relax and enjoy themselves, knowing their information is secure. That sense of security goes a long way toward making that customer one of your regulars.


If you would like to learn more about accepting mobile payments at your establishment check out Split, an innovative solution that helps restaurants and bars enrich and enhance the customer experience by connecting them to their guests phone.


Writer Bio: Kristin Crane is a writer and designer living in Providence, Rhode Island. She works with small businesses to help them promote themselves in various industries including food, wine, and the arts. She also contributes as Travel Editor to The Lady Project blog.