Chargebacks

[pizzasarah]

I have a delivery customer that has made several fraudulent chargebacks that we have lost, but I'm considering pressing charges since we know she got the food (it was 5 deliveries to the same house, and my drivers know her by name). Does anyone know if there is a chargeback fee from Toast? Our last processing company charged $15 per chargeback. I can't find one listed anywhere, but I need to figure out how much this woman is costing me before contacting authorities. Thanks so much!

[au79teahouse · Accepted solution]

https://central.toasttab.com/s/article/Chargeback-FAQ

You can find more information in the article linked above. The fee is $15 each chargeback.

[chrisMKE]

Hello!  I have brought this up to Toast on more than one occasion.  They have not figured out a solution to this.  We don't have as many issues as you do, but every dollar counts.  The advice I was given is two things you can do.  1. don't take on line orders (that is a mistake as you my lose lots of orders) or 2. Don't take cards on line, but they have to pay when they get to the restaurant.  The issue here, is that people may order and not come to pick up their food.  Also, 3rd party may be an issue.  

I ordered something to pick up at Home Depot, and I had to put in a security code to verify my payment.  

Toast needs to figure this out.  I am guessing it is costing all of us tons of money.  It's really annoying.

[Rob]

Thanks for your reply. One thing I wanted to point out is that even when you enter a security code like you did with Home Depot, the process is the same; The customer bank is the entity that says whether the transaction is fraudulent or not. All the customer has to say is they were not the ones who entered the security code and their card was stolen, then this would be marked as fraudulent, and Home Depot would lose the chargeback as well. 
Most companies understand this and raise their fees to account for this. Toast does not, we instead want our fees to be transparent. We don't think it's fair to raise everyone's rates to account for chargebacks and essentially charge you for chargebacks whether you have them or not, this is basically what everyone else does.

The best security option you have is using EMV, and even when using EMV, unfortunately, you can still lose the chargeback because it's up to the customer's bank, not Toast. The link below goes into more detail about this.

Get Help With Chargebacks

[Jana]

How would you propose using your emv for a delivery order?  

Also, the process that the previous commenter mentioned regarding Home Depot would not prevent a chargeback.  However, it may deter a fraudster because they couldn't be as anonymous.  The previous provider did this and we saw chargebacks drop considerably.  They also did not charge any more for this fee.  We are seriously considering going back to this provider even if it we cannot integrate with Toast.  Chargebacks are just way too costly and frustrating.  Especially when you know that it is fraud.

[ashokr]

The email blocking as @Pking says above is good, but honestly we should block a CC and a name or something to be perfect. Its easy to get a new email, but not the same with switching a CC. They could but still not easy. 

[ashokr]

Are you contesting through the Toast backend? It usually gives you the digital signed receipts and you can write a formal letter explaining the repeat offence. Its always a shoot and hope to expect the best. If you don't respond they win all the time.