Train Your Team on Preventing Fraudulent Future Chargebacks

Last updated: Aug 17, 2026, 11:44 AM

Learn how to dispute fraudulent chargebacks and prevent future fraud with this step-by-step guide.

In this Article:

 

Train Your Team on Preventing Fraudulent Future Chargebacks Overview Steps

Handled by: Employee | Tools needed: Toast POS | Access needed: Toast POS access

 

  1. Verify billing zip code and use AVS
  2. Confirm guest identity when suspicious
  3. Avoid risky transactions and protect data
  4. Protect against online order fraud

 

Train Your Team on Preventing Fraudulent Future Chargebacks Details

  1. Verify billing zip code and use AVS
    1. For manually entered or phone orders, enter the guest’s correct billing zip code.
    2. Use a payment processor with Address Verification Service (AVS).
    3. Note that AVS is not verified immediately but provides documentation for disputes.
    4. Note: AVS and billing zip code verification apply to manually entered and phone orders. Toast does not currently perform real-time AVS/zip-code verification on online orders—an incorrect billing zip code will not prevent an online order from going through, so don't rely on this as a fraud check for that channel.

  2. Confirm guest identity when suspicious
    1. If fraud is suspected, request a photo ID matching the credit card name.

  3. Avoid risky transactions and protect data
    1. Avoid storing guest data unless necessary and ensure PCI compliance and encryption.
    2. Avoid transactions with multiple declined cards.
    3. Prefer EMV dip or tap for card-present transactions.
    4. For phone or manually keyed orders, avoid keying in card details when a dip or tap option is available—keyed entries lose liability shift protection.
    5. Note: This guidance is for in-person and phone orders. Online orders are inherently card-not-present and can't be avoided this way if you offer online ordering—see Protect against online order fraud below for that channel.
  4. Protect against online order fraud
    1. Online orders are always card-not-present, so this risk can't be fully eliminated. Toast runs automatic backend fraud checks (using signals like device, IP, and payment history) on every online order; there's no setting for restaurants to configure here.
    2. If you notice a pattern of fraudulent online orders—for example, repeat chargebacks tied to the same guest—contact Toast Customer Care. Toast's Fraud team can block the email address and/or phone number tied to those orders from placing future orders.
    3. Blocking a credential only prevents that guest from ordering again; it will not reverse or help win a chargeback already in progress on an existing order.
    4. For specific chargeback disputes, use the Chargebacks report in Toast Web to review history and submit evidence through Chargeback Challenger.

 

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