Until recently, chargebacks in the restaurant business were comparatively rare. So, what changed? Monica Eaton of Chargebacks911 weighs in on the question in a recent guest feature to the Modern Restaurant Management blog regarding restaurant chargebacks.
Modern Restaurant Management (MRM) magazine is a go-to resource for on-the-go restaurant-industry professionals. Focused on all aspects of restaurant management news —the business of eating— the online magazine posts news items on a daily basis, incorporates profiles, trends, and expert advice to offer valuable content to this niche.
In the piece, Monica writes that the digital era has significantly impacted the food and beverage space. Being able to order online and have dinner delivered opened new doors of opportunity for eating establishments. Then came Covid, a surge of online and CNP (card not present) transactions, and the resulting spike in restaurant chargebacks.
“The fact that you’re dealing with an online form, rather than a person over the phone, makes it feel less personal, so there’s less inhibition to filing a chargeback,” Monica says. “Or, in situations where the ordering was done through a third party, the buyer may not actually be able to reach the restaurant in question.”
Of course, some cases may be plain cases of cyber shoplifting. “The anonymity of online ordering has made it much easier to place an order with the intent of abusing the chargeback process. Because the buyer interacts with an online form rather than a real person, it’s easier to rationalize this behavior as a ‘victimless crime,’” she says.
