Credit card skimming in the restaurant industry is becoming more exposed as high-dollar theft cases are being made against restaurant workers. Recently in the Minneapolis – St. Paul area, seven employees were charged with stealing customer credit card information from those they served in the restaurant.
When handling customer credit cards the workers also swiped the card through a portable electronic device commonly known as a “skimmer.” The skimmer captured the customer information contained on the magnetic stripe on the back of the card. The information can then be sold or transferred to organized rings that produce counterfeit cards and rack up fraudulent charges.
In this case, the group allegedly used the customers’ stolen information to fraudulently purchase at least $150,000 in goods and services in just five months. Last year, “skimming fraud” cost the restaurant industry more than $200 million and the trend is rising - rapidly!
It presents a very real problem for the restaurant owner and retailer. Trusted employees perpetrate this crime against their customers. The customer does not know their credit card information has been compromised until they get their monthly credit card statement. By the time credit card companies and the retailers and restaurants are notified that there may be a problem, large amounts of fraudulent purchases have been made. As in most cases, many customers’ cards have been compromised in one location and the crime can easily amount to six figures, as outlined in this one.
The outrage from customers that have had their identities stolen does not bode well for the manager or the owner of the business who failed to protect them from the crimes committed by their employee(s) and fail to appropriately respond after it happens. The brand image can be damaged, sometimes irrevocably.
Dine Fraud Free is the only true solution to this problem. Restaurant owners and managers can spend hours and unnecessary expenses training staff, managing staff, and properly screening employees. This, or simply implement our program and start eliminating the risk today. With our Dine Fraud Free program, the customers card never leaves their sight. The transaction happens at the table. One major benefit (among numerous others such as faster table turn times) of Dine Fraud Free is the built in PIN pad on the terminal allowing the restaurants the opportunity to obtain a PIN debit transaction. With Dine Fraud Free's PIN debit program merchants pay 0% + $.49 cent transaction fee for all PIN debit transactions. The average merchant pays anywhere from 2-4% to process credit cards in their business. This means, for a $50.00 table, the restaurant pays out $1.00-$2.00, but, with our PIN debit program the restaurant would pay 0% plus a $.49 cent transaction fee. A savings of $.51 cents to $1.51.
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