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Toast App Chargebacks

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Pizza914
Soup I

‎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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josh212
Main Course I

‎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.

Josh
Community Ambassador

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13 REPLIES 13

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HearthpizzeriaB
Community Ambassador
In response to josh212

‎12-30-2025 06:07 PM

I didnt know that we could block device IDs. Thanks for the info

Brian Andersen, Community Ambassador
Hearth Pizzeria Needham MA
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Sdaniel
Community Ambassador
In response to HearthpizzeriaB

‎12-31-2025 01:36 PM

I hope this is the case now, in the past Toast agents said there wasn't anything they could do to block customer with repeat chargebacks. 

Sayra Daniel, Community Ambassador
Egg Harbor Cafe
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ashokr
Community Ambassador
In response to Sdaniel

‎01-08-2026 12:12 AM

That is sadly true. Even in a CHIP transaction and we have the customer signature Toast can't do anything because the laws are so one sided. I've been thinking something like this needs an action and the entire restaurant industry needs to come together. On a chip transaction if this is real fraud the customer bank should own it. 

The challenge isn't a two way street, you can give something but its a fire and forget and there is absolutely no way to escalate. Several customer do take benefit. 

Atleast a way to block those customer cards, or even the customer would be a great optin, but alas!

 

- Ashok Raj
Toast Community Ambassador
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LTY
Soup I

‎02-14-2026 07:25 AM

This is so bogus stuff from toast. I take online orders thru their toast online platform, AND I require a photo ID upon pickup up of the food (both much match in name)  and have yet to win a chargeback, EVER!  Toast doesn’t care, they are happy to rack up the $15 on each chargeback. 

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