Credit card fraud is growing every year. In 2019, more than $28 billion was lost to credit card fraud! In the past, GoGoo.Me told our customers how specific restaurants have been hurt by this increase in credit card fraud. Today GoGoo.Me wants to focus on how much these credit card frauds cost restaurants, why they are so difficult to defend against, and what companies like GoGoo.Me are doing to stop this.
How much does credit card fraud cost restaurants?
CNBC reported in an expose on credit card fraud that in 2020 the United States lost $11 billion due to credit card fraud, with 2021 looking to become a landmark year for all the wrong reasons. What is less clear who is on the hook for these fraudulent purchases.
Forbes recently reported that “merchants” or the restaurants are on the hook for these buyback scams, not the banks. This is because nearly every purchase done on delivery apps doesn’t have a signature or credit card scan, and often just relies on customers not trying to screw them over. When dishonest people use these scams for a free meal, restaurants are still on the hook for the amount that the person was charged but are also charged fees for investigating the chargeback or fraud scheme. If a restaurant appeals the fee and does not provide satisfactory evidence to the fraud investigation, they are also forced to pay an arbitration fee on top of everything that they have already been forced to pay! This means that, if restaurants lose their appeal, they can lose anywhere from $75 – $200 in the initial loss, banking fees and arbitration.
The banks have every right to protect their assets and encourage restaurants to better safeguard their banking transactions, however, customers must realize that with 5-10 “harmless little dine and dashes” a restaurant could lose an entire week’s profit or their whole business. These losses are not “sticking it to the bank,” rather, these are hurting the already hurting small businesses. Big corporations can recoup some of their losses through insurance, however, smaller businesses often cannot afford or do not know about such insurances.
Many businesses in Koreatown are owned by older folk, who have survived off of pure grit and hard work. Working closely with these mom-and-pop shops gave us a clearer view of how these fraud cases can be devastating to small businesses.
What are companies like GoGoo.Me doing to help?
GoGoo.Me is a food delivery app that was founded by three compassionate dads who wanted to bring a solution to many problems that they had seen in the food delivery business. loved to eat but were seeing and hearing how restaurants were getting screwed over left and right over the past few years from well-known delivery apps and criminals trying to scam food out of hardworking restaurant owners trying to make a living.
GoGoo.Me works with Stripe, the preeminent e-commerce banking companies in the world, working with companies like Target, Kickstarter, and GoGoo.Me. They have spent years developing technology that can’t be hacked and detects fraud in real-time.
GoGoo.Me goes beyond the programming though, personally working with our restaurants, and treating them like friends and family. Using state of the art security technology, GoGoo.Me is updated on high-risk accounts in real time and is able to notify our restaurants to cancel orders and help them save themselves from a scammer. GoGoo.Me believes in partnership with our restaurants and works hand-in-hand with them to make sure that if fraud happens, we are on their side, and are here to help them get back the money they deserve. Because GoGoo.Me understands that when you value the community, the community values you.