Monica Eaton, Founder and CEO of Chargebacks911, was recently invited to share her insights on chargebacks in the quick service restaurant space for QSR Magazine.
QSR Magazine delivers timely and in-depth reporting on the $350 billion quick-service restaurant industry. For 25 years, QSR has defined this market, including traditional fast food, fast casual, coffee, snacks, concessions, and related segments of the food service industry.
Restaurants were once one of the least chargeback-prone business verticals. However, with new technologies and options like delivery and curbside pickup changing the shape of the space, chargebacks are now a major concern. As Monica explains in the piece, “Given that technology-driven delivery and pickup options are likely here to stay, it’s essential for quick-service operators to determine optimal strategies to shield themselves from fraud, unwarranted disputes, and preventable chargebacks.”
QSRs are chargeback prone because they prioritize speed, are most card-based, and see a high volume of low-value transactions. This creates a perfect storm, which can have major ramifications for merchants.
“Chargebacks commonly cause reputational damage, tarnishing the company’s image in the eyes of not just customers, but financial institutions (FIs) too. Each chargeback signifies a customer’s dissatisfaction, so a high number can create the perception that a business is failing to deliver satisfactory services or honor its commitments.”