Running a business isn’t always smooth sailing — especially when it comes to chargebacks. Recently, several of our customers were hit with fraudulent transactions involving lottery ticket purchases. Someone used a stolen card at multiple locations, leaving business owners stuck dealing with the aftermath.
Let’s break down what you need to watch for so you can help protect your business from situations like this.
🔴 Common Chargeback Red Flags:
1️⃣ Large, Unusual Purchases:
If someone suddenly buys hundreds of dollars in lottery tickets, gift cards, or high-ticket items without batting an eye — that’s a warning sign. Most regular customers don’t make massive impulse buys like that.
2️⃣ Multiple Transactions in a Short Period:
Back-to-back swipes or splitting a large purchase into smaller transactions is a classic fraud move. Be cautious if someone’s ringing up several high-value tickets or items in one visit.
3️⃣ Out-of-State or Suspicious-Looking Cards:
If a customer’s ID doesn’t match their card, or they can’t provide ID at all — pause. Stolen cards often travel fast and get used at random places before being flagged.
4️⃣ Rushed or Pushy Behavior:
Fraudsters often act impatient or anxious, trying to get through the transaction before you have time to question it. Trust your gut.
5️⃣ Avoidance of PIN or ID Verification:
If a customer insists on swiping or using tap-to-pay without letting you verify ID, consider it a potential risk.
✅ How to Protect Your Business:
- Train your team to spot and question high-risk transactions.
- Always ask for ID and Signature on big-ticket purchases.
- Set transaction limits on specific items like lottery tickets or gift cards.
- Monitor sales reports daily for unusual patterns.
📢 Final Thoughts:
Chargebacks hurt your bottom line and can damage your business’s reputation with payment processors. Staying alert and proactive is your first line of defense. Remember — if something feels off, it probably is.
Stay sharp, protect your shop.