How Restaurants Can Avoid Friendly Fraud

For the hospitality industry, the last 18 months have been very challenging. Walk down any street, uptown or downtown, and there are still numerous ‘closed’ signs on the front of restaurants and other service businesses. Many small business owners added online storefronts and delivery services to help sustain their business admidst vanishing in-store customers, but they now face a new economic threat – friendly fraud.

A study commissed by Visa found consumers are spending more on restaurant delivery and online ordering for curbside pickup/delivery of groceries than any other category since the start of the pandemic. However, reports of friendly fraud – when a customer submits a dispute with their issuing bank for a legitimate purchase to obtain a refund after goods or services have been received – has been rising. This can disproportionately impact small businesses.  

For restaurant owners, it’s delivery dine and dash.

How Restaurants Can Protect Themselves from…