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PhotoSnap prevents costly chargebacks

February 22, 2013

A recent innovation in merchant fraud protection solutions may set restaurants owners' minds at ease and save them money.

A recent innovation in merchant fraud protection solutions may set restaurants owners’ minds at ease and save them money. 

PhotoSnap, a new development from Next Gen Dine, allows servers to take a photograph of customers, along with their credit card and identification documents, when they rack up a large tab. The technology marks the images with GPS coordinates and stores them according to PCI compliance policies. If the customer attempts to dispute a legitimate charge, the merchant fraud protection program will allow business owners to recover the materials they need quickly.

Chargebacks can be a major problem for restaurants. While some are certainly legitimate, many of the claims come from customers who have overspent or are looking to cover their tracks, according to Next Gen Dine. Since patrons’ claims are often difficult to disprove, banks usually decide to refund them, a cost that comes directly from hospitality establishments’ pockets.

In their 2011 Chargeback Management Guidelines, Visa recommended that restaurant owners can also avoid chargebacks by training employees to only authorize cards for the amount on the bill, never including an expected tip. Visa also suggested that establishments should keep solid records of signed receipts in case of disputes.

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