“We got waxed pretty hard,” Ryan Fletter, owner of Denver’s Barolo Grill, says of an experience where a diner ordered a huge dinner, used a credit card with a magnetic strip, and disputed the charges a few days later. This was pre-pandemic, and Fletter has since switched the restaurant’s POS and credit card terminals to “chip and dip;” now, each transaction receives a unique code. “Using a chip demonstrates one has the card in hand, [and] that is what Visa, Amex, etc. will use as a consideration in potential fraud or chargeback rulings,” Fletter explains.
Given the rise in chargeback scams across the country, Colorado operators would do well to protect themselves. There are two ways, neither of which are totally satisfying: Upgrade your technology (expensive!) or, if you’re keen on online ordering and delivery, lean on third-party apps (gulp!), which are Payment Card Industry Data Security Standard—or PCI—compliant. And one last thing, says Fletter: Never ever take credit cards over the phone.
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