Chargebacks and Refunds Are Not Equal

A “chargeback” is a debit to your merchant account that occurs when a buyer denies a charge directly with the credit card company instead of asking you, the merchant, for a refund. Buyers may have these reasons for making a claim:

recurring charge not canceled as requested
non-delivery of the item
wrong item delivered
defective item
unauthorized purchase
the buyer does not recognize the description of the charge on the statement

For every chargeback you receive, you not only lose the revenue and perhaps the merchandise, but you also have to pay a non-refundable chargeback fee to your acquiring bank.

Fighting Chargebacks

Although many chargebacks are legitimate, more and more often, the chargeback is made by the buyer with the intent to defraud. Currently is makes up 30% of all chargebacks and this number is increasing every year.

As a leading provider of Point of Sale systems and credit and debit card processing in Nashville, TN, we urge merchants to question every chargeback. Don’t simply accept the assigned reason code for the chargeback as the truth. Try to identify the actual cause of the chargeback with the customer. Don’t take the attitude that chargeback fraud is simply part of the cost of doing business. Every time you do not fight a chargeback, you are saying to the acquiring bank, “This is legitimate, and I am at fault.”

It’s important to fight chargebacks for these reasons:

It protects your reputation with customers and banks.
Recovery of revenue helps your bottom line.
It helps identify repeat offenders for blacklisting.
It emphasizes the problem in the industry which can spur the industry to take steps to better identify and prevent customer fraud.

Prevention Is Better Than Winning the Fight

Preventing a legitimate or fraudulent chargeback is always better than having to fight a chargeback. It cost you less money and less time. So be sure you are doing all you can do to prevent chargebacks.

If you are one of our customers, you know that we are only a phone call away. If chargebacks are becoming a problem for you, we can give you some advice about best practices.

To Sign or Not to Sign

On April 13, 2018, if DaVinci paints “The Millennial Mona Lisa,” he will probably sign his name down in the right-hand corner. But he wouldn’t be required to sign a credit card transaction receipt if he bought a big-screen TV that day. That’s because beginning on that date, credit cards will no longer require a signature for any point-of-sale transactions made in the U. S. and Canada.

Merchants with credit card readers that require a signature on the screen may not be ready in April if they have not upgraded their point-of-sale software in time. It’s not a difficult upgrade, but you may have to sign for a while longer if merchants are as slow to upgrade their software as they were to change to the EMV chip card reader terminals.

If you are one of those merchants that still has not found an EMV chip card reader that is right for you, E-Payment Solutions can help. We offer the equipment that provides business with compliance and protection.

What Does “No Signature” Mean for Consumers?

Consumers are the real beneficiaries of this change. The bottom line is, it will be faster and easier for consumers to shop. If you are worried that this will open the door to more fraud, don’t be. Signature authentication has not been valuable for many years.

Mastercard Led the Way

Mastercard was the first to make the decision to eliminate signatures. It made its announcement in October last year, the other credit card companies soon fell in line. Discover announced on Dec. 6, that it, too, would abandon the signature requirement. American express announced on December 11, and Visa announced on January 12 of this year. The theory that eliminating signatures would increase sales was unanimous.

If You Have Questions, We Have Answers

As a merchant, if you are wondering how this change will affect your Nashville credit card processing services, merchant account, or POS System this would be a good time to make additional changes, please give us a call at 615-902-0300.

Insider Advice on Charge Card Sales for Quick Service Restaurants

Do you own a “quick serve” or “fast food” restaurant? Are you looking for some quick tips to make your business run smoother and more profitably? Here’s some insider advice about one improvement that can result in multiple benefits – the right Point of Sale (POS) system.

Making Fast Food Faster

Your patrons will have a better experience paying with their charge cards if your POS system makes ordering and paying fast and accurate. The new technology in the right POS systems can simplify and speed up the entire process. For example, you can:

Make long lines disappear by taking orders with a handheld device.
Save patrons time and trouble by eliminating the need to sign the charge card receipt. VISA does not require a signature if the bill is under $25. Mastercard does not require a signature if the bill is under $50. Soon both Mastercard and Discover will do away with the signature altogether.
Save patrons who come in groups the time of splitting the check or combining the checks. The POS can do that for you. So, it’s faster and easier for your employees and customers too.

Getting the Order Right!

Don’t you hate it when you ask for “no mayonnaise,” and your sandwich comes with mayonnaise slathered all over it? With the right restaurant POS system and the right programming of the POS, mistakes from poorly handwritten tickets can be a thing of the past. Fewer mistakes means happier customers.

Making More Money

Making more money is not always a matter of raising your prices. You also can make more money by cutting expenses or increasing sales volume. Here are three ways to make more money with a POS:

Use a POS that includes on-screen tipping. Customers like this option, BUT employees like it even more! Reports show that onscreen tipping significantly increases tips earned. This amounts to a nice pay increase for your employees that you don’t have to fund. It also contributes to less employee turn-over. As a result, you save money in training costs.
Use a POS that allows you to go paperless on receipts. You can send the receipt by email or text and save money on paper. It also saves the customer something too – the time it takes to deal with one more piece of clutter. It’s a win – win.
Use a POS that communicates with an online ordering system. If your restaurant is not doing this now, you are losing business to your competitors! Consumers want this convenience, and they spend more when ordering online.

Getting the Right POS

The Clover Point of Sale family of products provides the ability to do all the tasks suggested in this blog. For more detailed information about the different Clover POS systems and a free demo please request a quote or call E-Payment Solutions at 615-902-0300.

Case Study: A New Restaurant POS System for Nashville’s Mitchell Delicatessen

Mitchell Delicatessen in East Nashville first opened its doors in 2008, and quickly gained a reputation for having the best sandwiches in Nashville. Mitchell’s has received numerous accolades on both local and national levels, including, The 21 Best Sandwiches in America*, a feature on an episode of Adam Richman’s Best Sandwiches in America – South Episode**, and Best Deli in Nashville***. After nine years in business, Mitchell’s continues to create amazing food using locally sourced high quality, natural ingredients. However, their restaurant POS system was beginning to lead to frustration and inefficiency.

Clover® POS System to the Rescue

Once owners David and Wendi Mitchell became frustrated with the shortcomings of their existing point of sale system, they began to look into other options. After much research, the Mitchell’s decided to purchase a Clover® Point of Sale from E-Payment Solutions, a local point of sale software company in Nashville that specializes in payment processing. With the assistance of E-Payment Solutions, the deli now operates using two Clover Station bundles, two Clover Mobile devices, and a kitchen printer to process payments and streamline their internal business processes.

The availability and accuracy of business reports is paramount to any business. On a regular basis, the former system’s reporting was inaccurate and reports could only be accessed at the restaurant. With Clover POS System, the Mitchell’s now have access to extensive reports from anywhere they have an internet connection, and they can filter that data as needed for reconciliation purposes. It has never been so convenient for the Mitchell’s to run their business!

Additionally, the Mitchell’s former system was very complicated, limiting the ability to easily adjust menu items, prices, modifiers, employee information, etc. Clover is user-friendly and intuitive, allowing users to make changes from any Clover device or from Clover’s Web Dashboard within seconds. The changes also sync automatically to linked Clover devices. These streamlined, intuitive characteristics are carried across Clover’s entire software, making it easy to train staff and up-train managers on system functions.

Local Support Structure for Restaurant POS System

Another major pain point for Mitchell’s was the inability to receive the support they needed. What’s worse, the support they did receive was extremely expensive. For a busy delicatessen with a fast-paced business model, Clover is efficient and reliable. With E-Payment Solutions’ local support structure, backed by Electronic Payments’ 24/7 Technical Support, they now have multiple layers of outstanding service when needed at no cost.

With Clover, Mitchell’s had the opportunity to select from a wide variety of hardware options, further meeting their diverse business needs. For instance, the Mitchell’s selected two Clover Mobile devices that can be used for line-busting during the busiest hours, allowing them to increase their serving capacity and uphold customer satisfaction.

Prior to adding online ordering, the Mitchell’s were unable to facilitate incoming phone orders for takeout. With quick and easy access to the Clover® App Market, they found a solution in Menufy, an online ordering app that has helped increase business, simplify carryout orders, and offer a service that their customers really appreciate.

“We really love the search capabilities with Clover,” stated Wendi Mitchell. “Simply typing in one or two letters will pull up the pertinent information, whether a menu item or a previous order. Some of our cashiers use the search option on every order. We also really enjoy the on-screen signature and tipping capabilities and the ability to choose the receipt options (email, print or text).”

The Bottom Line

The implementation of Clover has been a huge success. The pain points experienced with the previous point of sale system have been solved and Clover has proven to be a cost-effective, efficient and reliable system that has helped Mitchell Deli uphold their success. Additionally, the Mitchell’s are very pleased with the professional level of support, especially the responsive and knowledgeable local support provided by the E-payment Solutions team in Nashville.

Contact E-Payment Solutions to Discuss Restaurant POS Systems in Nashville

* https://www.thrillist.com/eat/nation/best-sandwich-shops-in-america-thrillist-nation

** http://www.travelchannel.com/shows/adam-richmans-best-sandwich-in-america/articles/sandwich-report-card-asian-flank-steak

*** http://www.nashvillescene.com/nashville/food-and-drink-readers-poll/BestOf?oid=3039745

The Clover trademark and logo are owned by Clover Network, Inc., a First Data company. All other trademarks, service marks and trade names referenced in this material are the property of their respective owners.