Requiring signatures for credit card transactions

[SolutionsGal]

Perhaps this can help answer some questions.

http://usa.visa.com/download/merchants/ … ctions.pdf

 

[smeagol8]

royster13:

smeagol8 just curious how much volume you lose by not taking credit cards on the phone…

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We get one or two people per week that ASK if they can pay over the phone, but we have never had anyone cancel the order because they couldn’t. (We don’t deliver, btw.)

 

[pizzapirate]

smeagol8:

royster13:

smeagol8 just curious how much volume you lose by not taking credit cards on the phone…

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We get one or two people per week that ASK if they can pay over the phone, but we have never had anyone cancel the order because they couldn’t. (We don’t deliver, btw.)

How many people a week don’t call because they already know you won’t take their card over the phone? Its like saying we don’t take credit cards at all and only like one or two people a week ask – and they never cancel anyways . . . btw, unless you answer every phone call, how do you know they never cancel? Realistically speaking, you’re not going to know what goes one with “every” call.

I know we’re not talking a ton of orders here in this situation (since you don’t deliver), but I think most would agree here that you loose far more business by limiting payment options than you would ever loose to chargebacks.

 

[royster13]

Ditto what pizzapirate said…

 

[Wizzle_Wassell]

The key point I saw in smeagol8’s post was that HE DOESN’T DELIVER.

If you don’t deliver then I can’t imagine WHY you would want to accept cards over the phone - it makes no sense at all if the customer was coming into the shop in any case. We accept cards over the phone for delivery but if they are coming in its card or cash at the point of sale.

Allowing carryout with card holder not present is just asking fro trouble you have no delivery address, you have no chance to see the card etc.

 

[pizzapirate]

Wizzle Wassell:

The key point I saw in smeagol8’s post was that HE DOESN’T DELIVER.

If you don’t deliver then I can’t imagine WHY you would want to accept cards over the phone - it makes no sense at all if the customer was coming into the shop in any case. We accept cards over the phone for delivery but if they are coming in its card or cash at the point of sale.

Allowing carryout with card holder not present is just asking fro trouble you have no delivery address, you have no chance to see the card etc.

I did note the fact that he does not deliver, and I know we are not talking about a lot of volume in this instance, but the principle remains the same.

Parents order dinner from work and their kids or spouse pick it up.
“Hey, I’m already in the area, I don’t have my credit card, so my wife is going to pay for it over the phone.”
Kids are picking up the pizza and the parents don’t trust them with their card . . .

I’m sure others here can give more examples of how these orders happen but the point is, there are legitimate reasons. Customers may be accepting of business restrictions but if one of these “restrictions” does not meet the demands of their current circumstances they are either passing or going elsewhere.

 

[Wizzle_Wassell]

In our location merchants are strongly advised not to accept ‘card holder not present’ transactions unless we are delivering the goods to the card holders address.

In my 5 years in the shop (and I’m in there on the phones regularly) I’ve had only one or two instances where someone wanted to pay over the phone and get someone else to pick it up. One I recall was a regular customer whom we had delivered to (not a problem for them) and one a first time. I am very wary of first time customers with credit cards in any case so I declined, explained why and they sent someone in via an ATM.

In my experience most problems with card holder not present fraud can be stopped by some simple statements up front on the phone. Telling the customer that we need to see the card and get a signature (even though this does little in the event of charge backs) and we only deliver to the card holders registered address (OK the odd exception where the customer has a track record with us). I get 1 or 2 chargebacks a year and IMO this is because of how we position this with customers rather than being restrictive on how customers pay. Once someone finds a way to fraud you then very soon you’ll get lots of these people trying it until you change your procedures. I believe that people know we’re fairly strict on cards and therefore they don’t tend to bother us. Oh yes and lot of our competition don’t accept cards at all - what a shame!