The growing problem of friendly fraud

Order pickup is a proven channel for restaurants, but friendly fraud is a growing problem. It happens when a customer places an order online and collects it in person, but they then deny collecting the order or even making it in the first place. This can force merchants and operators to issue chargebacks.

SoftPoint is a company that develops unified commerce solutions for complex card-present environments, with a particular focus on hospitality. We’ve been working with them to explore solutions that can combat friendly fraud, combining their expertise with the capabilities of our Acceptance Devices.

A unified solution using Acceptance Devices

Together we developed a unique ‘on-premises/off-premises’ solution with two parts:

  • First, a customer starts a card-not-present transaction online to place an order.
  • Then at pickup, the customer taps their card on the Acceptance Device to complete the transaction. This allows the merchant to record a card-present sale, making it harder to dispute it.
     

This solution is cost-effective and secure for restaurants and offers a simple payment experience for customers.

It also leverages our Token Management Service, which allows restaurants to store customer information securely and recognize genuine returning customers. This means the acceptance process will be quicker and the customer experience even more streamlined next time they order.

Restaurants and retail have complexities, like anything that has to do with bar charges, refunds, and partial refunds. All of these features are now appearing in the Acceptance Device, so it can be a tool that merchants of all types can actually use.

Christian Rivadalla, Co-CEO, SoftPoint

Reducing friendly fraud to zero for White Chocolate Grill

One of the earliest adopters of this solution has been a popular U.S. restaurant chain, White Chocolate Grill. Since its implementation, the solution has resulted in a 100% reduction in friendly fraud chargebacks on takeout orders for the restaurants.

Other large restaurant groups have used the solution with similar results, including Benihana, Perkins, Huddle House, and Fox Group, to name a few.

A partnership opening new possibilities

Working with Visa and Cybersource has really helped us streamline the whole process and enhance the end-to-end solution.

Tim McKenna, Chief Sales Officer, SoftPoint

From faster acceptance to more tailored loyalty programs driven by tokenization, our collaboration with SoftPoint is finding new ways for restaurants to deepen their relationships with customers.

With our shared expertise and SoftPoint’s unique lab environment where new technology services are continually being tested, our partnership is powering progress.

It's been a rewarding experience to collaborate with SoftPoint, seeing first-hand the innovative solutions they've launched using our Acceptance Devices. These solutions bring immense value for merchants operating in complex environments, allowing them to provide a simple and seamless solution to their customers. We look forward to continuing to bring innovative solutions to market through our partnership with SoftPoint.

Youssef Elarnaodi, Senior Director, Visa Acceptance Solutions

More about our Acceptance Devices
 

Our experts can show you how to leverage our acceptance solutions to help your business fight friendly fraud.