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Returns and Fraudulence - POS Software Guide - Cashier Live
Past reports have estimated that about 8% of all retail returns are fraudulent in one way or another. These types of returns can lead to unexpected dives in your profit margins and even leave quite the dent in your bottom line. It is strongly advised that you not only put extra thought into your store’s return and fraudulence policy, but invest in a POS software system that can potentially save you mass amounts of money in the long-term.1. Keep track of inventory electronically. Your daily reports should indicate how well products are selling and list adjustments to inventory; if you have a product underperforming that you know probably should not be, and there have been an uncanny amount of inventory adjustments through the course of the day, look into why this may be happening. It could just be a coincidence, or you may be dealing with theft or a situation of customers finding loopholes in the return system. You should always keep an accurate report of inventory.
2. Check register reports at the end of each business day. You or your managers should be looking at reports to see unusual amounts of drawer openings by your employees and the rate of returns. It is best to be open with your employees about completing this evaluation daily; it may be a productive first step in eliminating unauthorized returns.
3. Invest in an electronic check verification system. These systems are specifically designed to weed out those bad checks a customer will fill-out to pay for their transaction. These systems will automatically scan a customer’s bank account to verify that they have sufficient funds to pay for the transaction.
4. Pay attention to customer history. Make the most of your POS software by using it to keep a record of your customers’ return history; this means keeping track of customer identity by having them scan their driver’s license or submit basic personal information (phone number, address, etc.). Keeping track of your customer’s history means having the ability to pinpoint a rotten apple in the bunch; that is, those who have frequently returned items, provided false information on product pricing at the time of purchase, or may be suspected or printing fraudulent receipts. Some systems are intrinsically designed to target these customers and will automatically flag an attempted return.
Source: POS Software Guide
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