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12-26-2025 10:28 PM
A couple of days ago I received a chargeback from a regular customer on an order dated 8/22/25 that was placed through Toast's app (toasttab.com). Because I was busy with the Christmas holiday I was going to give the customer a call over the weekend.
Tonight I received 6 more chargebacks, ALL FROM THE SAME CUSTOMER, all ordered on Toast's app. Some were deliveries, others were pickups. The chargeback claims "10.4 - Other Fraud – Card Absent Environment". This is obviously a scam by this customer, but shouldn't this be Toast's problem? It's their app! I can understand if I took the card over the phone, but she placed it online using Toast. Even if I win the disputes, I'm out $75 for all the chargebacks!
Any advice?
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Payment Processing
12-27-2025 05:28 AM
First off, what’s up Westchester!
You’ve hit on the ultimate dilemma: the balance between security and customer friction. If we make ordering too restrictive (2FA, captchas, etc.), we lose legitimate sales. Even strict AVS (Address Verification) can be tricky, as people often order to their office or a friend’s house.
The Hard Truth: We are Responsible One thing every owner needs to realize is that we are ultimately responsible for these chargebacks. Even though the order is placed through Toast’s app (toasttab.com), it’s a "Card Not Present" (CNP) transaction. Even with an app-verified stored card, fraud can still happen, and the bank puts the liability on the merchant. You can't assume Toast will eat that cost just because it’s their platform.
Note: On 3rd-party apps (Uber/DD/Slice), those platforms usually take the hit for the chargeback since you’re already paying them a high commission, but for Toast direct orders, that's your money on the line.
How to Spot and Stop the Scam:
Document Everything: If it's a delivery, you need proof. Using a tool like Shipday is great for documenting the delivery with photos of the food at the address. If you have a photo and a GPS ping, you have a much better chance of winning a dispute.
Watch for "Red Flag" Area Codes: If the order comes in with a strange area code (not 914,845,917,929,347,646,201,332,516,212,203) take a second look and call as they usually are dummy numbers
Spot the "Dumb" Order: Scammers often get greedy. If the order looks nonsensical or "too big" for a standard ticket, pay attention. They’d probably get away with it if they just ordered a pizza, but they usually go overboard.
The Human Test: Train your staff to call the customer if an order feels "off." Ask them to confirm a billing detail like a zip code. Fraudsters usually crumble under pressure and will just hang up.
Zero Out Loyalty: This is a big one. If you identify a fraudulent order, immediately wipe their loyalty points. Don’t let them build up rewards for free food using a stolen card.
The Ban Hammer: Call Toast Support and ask them to ban the user from your restaurant and block their device ID. You should also report them to the 3rd-party apps; your report might be the final flag that gets them de-platformed for good.
Stay vigilant! It really comes down to us doing our due diligence to protect our bottom line.
Community Ambassador
12-26-2025 10:50 PM
Toast's online fraud protection is very weak, the chargeback disputes never to win. To avoid losses from chargebacks, I only accept online orders through third-party platforms, the restaurant will received the payment even in the event of guest chargebacks.
12-30-2025 06:09 PM
I have been thinking about getting a ToastGo 3 to process payment upon delivery. With the new hand held having cellular data, I think this could be a viable method to get rid of the card not present environment.
Hearth Pizzeria Needham MA
12-31-2025 04:18 AM
@HearthpizzeriaB The question to ask is how many Chargebacks from CNP through online orders. Would not allowing contactless deliveries and requiring your driver's having to do all of the payment transaction at the door not decrease productivity. What is the cost of two Toast GO's plus cellular service a year, (keep in mind these devices will be inadvertently taken home by mistake by one of your drivers (if this is not the case, please teach me your ways so I can never lose a pizza bag again) versus how much of an issue is the chargebacks at your location a year. (this is a general question as for me I have only lost 3 out of 10 chargebacks amounting to $150 in almost five years so for me the answer is no, for others this may be different)
Community Ambassador
12-31-2025 10:10 AM
All very valid points. If I have 1 or 2 charge backs a year its a lot for me. It has been more of a preventative thought for me.
Hearth Pizzeria Needham MA
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