Prevent Fraudulent Transactions – Vagaro Support

We understand that avoiding fraud can sometimes be complex, and we are here to support you in any way we can. Should you have questions about how our software or require guidance on the payment validation processes, don't hesitate to contact us.

How Vagaro Protects You From Gift Card Fraud

Businesses on Vagaro can choose to sell gift cards, which can only be redeemed at the business that sold them. The business is responsible for the sale and redemption of gift cards they sell. Vagaro monitors the sale of gift certificates purchased with a credit or debit card as part of our normal transaction monitoring. If we detect fraudulent payment activity, we will reverse the transaction and cancel the gift card. This prevents the merchant from incurring a chargeback with the actual cardholder. We will also notify you if our Fraud Department cancels a gift certificate. If a gift certificate has been cancelled, you should not accept it for payment.

Card-Present vs. Not-Present

There are two types of card transactions:

Card-Present: When a customer presents a card in person, and you swipe, dip, or tap the card to process it with a credit card reader.
Card-Not-Present: When the credit card number is entered manually. Examples include online purchases, orders over the phone, or charging a customer's card on file.

You can prevent fraud differently based on the transaction type.

Best Practices for Card-Present Transactions (In-Person Orders)

Always try to dip or tap a card during the point of sale. A card-present transaction typically has lower fees and is deemed less risky. Try to limit manual entries (typed-in) and swiped transactions as much as possible.

And always make sure to follow the proper procedures when processing a transaction. If it's approved, ask the customer to sign the sales receipt or your device. If it's declined, return the customer's card and kindly ask for a different form of payment or another credit card.

Here are some additional practices to help reduce the likelihood of fraudulent transactions during in-store purchases:

Validate the physical card: Make sure it has not been altered in any way.
Ask for customer identification: Does the name on the card match the customer's profile or ID?

Best Practices for Card-Not-Present Transactions (Typed-in or Online)

Make sure the customer receives a delivery item in a timely fashion. Try and ship any products purchased in-house or online as soon as possible to avoid customer frustration.
If a suspicious customer wants to pay for an item with a credit card that's written down, it may be best to ask for another payment method.

Tips to Prevent Fraud

While our software can offer tools and features to help identify potentially fraudulent transactions, the responsibility to validate the authenticity of transactions ultimately falls on your shoulders, including verifying cardholder information and ensuring transactions comply with your business's policies.

When identifying potential warning signs for fraudulent practices, be aware of customers who:

Use gibberish for their customer profile name and email. Check your Transaction List report.
Purchase a large number of items, disregarding size, style, color, or price.
Purchase a lot of items before the store closes.
Purchase many of the same items multiple times.
Request an overnight or rush shipping of delivery items.
Are first-time shoppers.
Make in-store purchases using very similar card numbers.
Use gift cards that have the same purchaser and recipient.