Address Verification System (AVS): Fraud Prevention

Combat fraudulent orders with address verification tools

As a business, the customer experience is always the number one priority. For customers who order ahead, that experience begins at your website, ordering site or mobile ordering app. In situations where the customer is ordering remotely (not presenting their card in-person), you may run into the risk of fraud. It’s simply unavoidable. However, there are a few things you can do to reduce your risk as consumer, and also as a business.

Image sourced from the Consumer Sentinel Network data book published by the FTC in 2020

As a consumer

The FTC published their 2020 findings for the Consumer Sentinel Network data book which found more than 2 million fraud reports were filed. Between January – September of 2021, it is estimated that more than 2 million Americans fell victim to card fraud, with a total loss calculated at $3.3 Billion. Thieves can gain access a few different ways, including:

Physical theft: This one is a no-brainer. Theft has existed since the creation of the Mesopotamian shekel, and perhaps even since Otis the Iceman. Keep your wallets and purses close to you at all times, and only hand over your card to a trustworthy person/vendor or if you feel your life is in danger. 

Requested: Suspicious phone calls, mailed invoices and phishing emails are relatively familiar methods to most people living in the 21st century. More recently, similar requests can be sent via text message, social media, and QR code scanning. Before providing personal information to anybody, make sure it is a bill you were expecting to pay or it is being sent from a trustworthy sender. 

Skimming: Magnetic strips offer little-to-no security; inserting the chip for payment is more secure. However, if a merchant only accepts swipe technology, there’s not much the buyer can do. The malware can be installed physically, but most recently it has been accessed through the network. This malware would impact the merchants’ entire point-of-sale ecosystem. Obviously, not all swipe technologies are monitored by hackers who can remotely steal card information, but as a buyer you should be aware of this risk.

Malware: Phishing emails are relatively familiar methods to most people living in the 21st century. More recently, untrustworthy links can be sent via text message, social media, and QR code scanning. Before clicking on any links, make sure it is a message you were expecting to receive or it is being sent from a trustworthy sender. 

Image sourced from the Consumer Sentinel Network data book published by the FTC in 2020

As a business

If a customer’s card is stolen or they were the victim of a card reader scam, someone who isn’t the card owner may be able to use that card information to make fraudulent purchases. As a restaurant owner, you can take extra steps to guarantee their card cannot be used on your web or app ordering by anyone other than the authorized card user.

When adding their payment, customers will be prompted to enter more than just a CVV

AVS Security

Hazlnut has a great tool to protect not only your customers, but also your business from fraudulent activity. By requiring a postal code or billing address, the person entering the card information to pay online will need to know more than what can be found on the physical card. As a business, it will reduce the amount of chargebacks received since you are taking those extra steps to block fraudulent charges at your business. 

Clover has an account setting dedicated to fraud prevention tools that allow you to automatically void suspicious payments taken from Virtual Terminal and the eCommerce API. They don’t block payments taken from your point of sale device, but it will validate additional information. By default, all Hazlnut orders require the Card Verification Value (CVV) and a matching/valid expiration date. If you would like to use the Clover Address Verification System (AVS) tools, Hazlnut can require additional fields including postal code and street address. The Clover payment system will validate this information and accept or decline the payment.

How to turn on Address Verification (Clover):

You can enable it by going to your Clover dashboard (please do this from a web browser)

1. Click on Account & Setup on the bottom left
2. Under the ‘Transactions’ group, click on Fraud Tools
3. Click to ‘Show Rules’ for the Address Verification System (AVS) group
4. Here, there are 6 options that perform different functions. 
5. Make your selection, and click ‘Save’. 

You can also visit the Clover Help Center for more information (Scroll down to “Set up fraud prevention tools”): https://www.clover.com/en-US/help/set-options-for-using-virtual-terminal 

Please let us know if you would like to prevent fraudulent transactions through Hazlnut with the Clover Address Verification System (AVS) by contacting us today.

Physical Deterrents

Also, keep in mind… Your staff are always the first line of defense. If you’re faced with an increased number of disputes and looking for options to avoid these chargebacks, you can have the staff require identification or have the customer present the credit card used at pickup. This simple, old fashioned approach can help deter future instances of credit card fraud as would be bad actors will know this is your policy and look for easier prey. At Hazlnut, you can even add this as an urgent message or a pop-up to let customers know they’ll need to bring ID and the name on the ID needs to match the name on the card at pickup.

Of course, as we mentioned in the beginning, all steps taken should consider the overall impact to the customer experience. It’s give and take. You want to add more protections to help your store avoid chargebacks while not impeding the overall customer experience.

4 Ways that Hazlnut Pays for Itself

4 Ways that Hazlnut Pays for Itself

Hazlnut’s ordering software stands apart from most other online ordering platforms in many ways. One of those way is its flat pricing structure. You pay a set fee every month and never have to worry about processing fees, transaction fees, or any limits to how much you can use the system. This makes cost-benefit analysis very simple when deciding if Hazlnut is a good fit for you and whether the system pays for itself.

Other platforms take money out of every order, so you never really get past the cost of the service. Here are a few ways that Hazlnut helps you blow past that monthly fee and keep all the rest as profit.

Increased volume

It goes without saying that if you give customers more ways to order from you, there will be more orders placed. Online ordering is all about convenience and it’s probably the most important thing to today’s consumer. If someone has to choose between two restaurants for takeout and has no preference, odds are they will choose the one with the more convenient method of ordering. Phone orders are outdated, and no one wants to place an order in store and then wait around for it to be ready.

According to PMQ.com, if a customer places an online order, they will visit up to 67% more frequently. When someone has a pleasant experience ordering from you, they remember that and usually end up coming back.

Online ordering increases volume by providing more ways to order

Bigger ticket sizes

When a customer orders in-store, they always feel rushed. Whether they have a line behind them or a cashier looking right at them, no one wants to waste other people’s time. When a customer orders online or through a mobile app, however, they have as much time as they want to look through the menu and make their selections. Maybe they even try something new that they never knew was on the menu.

This leads to an increase in ticket size across the board when compared to in-store orders. In fact, Business Insider says that pizza chains have an 18% higher ticket size online verses orders placed in store. Hazlnut has seen similar results: a 20% increase compared to in-store transactions.

Loyalty Program

This also seems very obvious, but a loyalty program, like the one Hazlnut offers, can help increase sales far beyond that monthly fee. Think about it, if a customer orders once and earns 80 points, they’re going to want to use those points eventually. Whether they burn them all on the next visit or come back multiple times to save up for a big reward, you’re almost guaranteeing that customer is going to come back again.

Loyalty programs, like Hazlnut’s, keep customers coming back for more

Moving Customers Away from 3rd Party Delivery

3rd party delivery through GrubHub, UberEats, or others is a double-edged sword. It’s great to provide that convenience to customers, but the margins they take out (usually 25-30%) are terrible. It turns out that having your own ordering platform, like Hazlnut, can help with that. According to Hospitality Tech, 70% of customers would rather order from you than 3rd parties.

Simply by offering your own online or mobile ordering platform, a large segment of customers will begin to order from you instead. You get to keep 100% of the profits for those orders and, in some cases, this alone can completely pay for your monthly fee.

Want to learn more about how Hazlnut can help increase sales and pays for itself? Schedule a demo today!

Boosting Restaurant’s Social Media Engagement in 2021

Looking back at 2020 one lesson we’ve learned at Hazlnut is the importance of social media and digital branding. We are on our phones more than ever giving restaurants a unique opportunity to reach more customers and sell not only food, but a social experience through digital marketing. With the crazy year we have had coming to an end, we can start looking to the upcoming one and what we can do to prepare ourselves for it. At Hazlnut, we have a few ideas to help restaurants start 2021 off on the right foot!

Social Media

With smart phone cameras competing with DSLRs these days, we live in a time where food photography is shown off and photography has become an integral part of how we choose where to eat. Instagram, TikTok, Facebook, and even LinkedIn have become channels for sharing delicious food – so that’s where our focus will be in 2021. When a restaurant’s social media is managed well, it shows off the food and reassures a customer that the restaurant is open, trustworthy, active. Going to the social media page of a restaurant and seeing the last post was months or years ago can turn away customers. We believe that when it comes to food, people shop with their eyes so posting high quality photos of a menu that can be shared and shown off can really help elevate marketing reach and bring in more hungry customers.

SEO

People need to be able to find the business when they search it, so SEO is important. We all know no one goes to the second page of Google search results, so being front and center is key to getting clicks. SEO is something that needs to be refined restaurant to restaurant, there is no blanket solution but there are tips and tricks. For example, when posting on Instagram there is an option to edit the caption in advanced settings to include Alt Text to increase the restaurant’s visibility. There are companies that specialize in SEO or with some time and research it can be dialed in by anyone. This is something that will take some time, but it will pay off in the end.

They found the restaurant…..what now?

Once someone finds a restaurant’s social media channel and decides the food looks amazing and they MUST have to have it now, the next step is finding a way to order. That’s where Hazlnut comes in with online ordering. We build a branded online ordering page and give the restaurant a link to it that they can put on all of their social media and website directly. Posting a picture of a new item that looks amazing and garners a bunch of likes? Put the OLO link in the description to convert it to a sale on the spot. The online ordering link is a tool to get all of those people that they were able to reach using SEO and social media to make the final step to fall in love with the restaurant.

The Future of Mobile Ordering for Small Business Owners

Boost Your Business with Mobile Ordering

It’s no secret: starting your own small business takes a lot of bravado. Small business owners are the visionaries – the hard-working risk-takers that are willing to do what it takes to transform their passion into a paycheck. Part of being a successful business owner is staying open-minded and keeping up with the latest trends to satisfy customers’ needs. In a world where consumers have become accustomed to instant gratification and ease-of-use in ordering online, food ordering apps for restaurants are quickly becoming a new consumer standard. 

We Want it Now: Meeting a Growing Demand in a Millennial Market

food ordering apps for restaurants

As consumers become more familiar with online ordering in both retail and culinary trends, food ordering apps for restaurants are quickly becoming the new standard. Business Insider Intelligence Reports find that orders placed by smartphone and mobile apps will become a $38 billion industry by 2020. In just two years, it is projected that these orders will comprise 11 percent of all quick-service restaurants sales.

Now more than ever, millennials are enjoying their meals from home. In fact, when millennials order from restaurants, they’re dining in just 42 percent of what they used to. Data show that millennials are utilizing takeout services 40 percent of the time, and delivery 19 percent of the time, according to a recent study performed by Restaurant Business. As a small business, it is essential to target this growing demographic of diners who seek convenience and quality. 

Branding Wins Big on Mobile

By creating a recognizable, branded ordering app for your business, you are able to insert yourself right where young consumers spend their time: on their mobile phones. The busy modern consumer demands streamlined purchasing, the ability to shop without long lines and an efficient purchasing experience. Food ordering is no different.

By developing a food ordering app for your restaurant, you will require fewer staff to take payment and fill orders. The use of an app can also work to limit long lines and wait times, meaning that you can service more customers per hour and increase your revenue

 

Create Loyalty 

customer loyalty

Not only does the use of a mobile ordering app increase efficiency and productivity, it provides business owners with the ability to connect with their consumers on an intimate level. Loyalty programs can be attached to your ordering app to increase engagement with existing customers, strengthening the bond between business and consumer.

Hazlnut works to create systems that feature the branding elements that attracted your consumers in the first place. These systems work seamlessly with PoS systems like Clover, to allow for mobile ordering while increasing loyalty and providing marketing opportunities.

When creating your unique ordering app with Hazlnut, it’s important to consider your brand’s goals and to tailor your loyalty program accordingly. Thinking about what action you would like your consumers to take will work to promote behaviors that are right for your business. Creating a loyalty system that’s in-brand and features rewards and instructions that are simple and easy to understand will be the most enticing to consumers.  

Ready to take your business to the next level? Schedule a demo today