Increase Chargeback Protection for Card-Not-Present Transactions

How can I reduce payment fraud and help win chargeback disputes?

Entering the guest's billing zip code when manually keying-in credit card information on the POS may help to reduce fraud and win chargeback disputes.

Please note that Toast cannot verify whether the billing zip code is correct on the spot. Also, if no zip code is entered (this field is optional), the transaction could be placed into a more expensive fee category. 

1. After entering a guest's order on the POS, select Pay ($) and choose Credit as the payment method.
2. Choose Key in card number.
3. Enter the Credit card number, Exp. date, CVV, and billing zip code (recommended). If you don't add a billing zip code, you'll see a pop-up reminder with an additional prompt to enter the zip code.
4. Select Done when finished. 

Completing the zip code field is strongly recommended, as a zip code match can serve as evidence to help disprove chargebacks for card-not-present transactions such as takeout or delivery orders taken over the phone. In the event of a chargeback dispute, a record of whether the input zip code matched the cardholder's zip code will be included in your Chargeback Statement -- a positive match strengthens your defense against chargeback claims. 

Have additional questions about chargebacks? Check out our .

Now more than ever, we know fraud prevention is essential to detect card-not-present fraud and reduce resulting chargebacks for our customers. At Toast, we have invested in tools, such as real-time machine learning-based fraud monitoring, to help catch suspicious transactions and prevent them from happening. We cover the costs of these tools at no additional charge because we know how important it is to protect our customers from bad actors.

For manually-entered transactions, such as phone orders, Toast provides an added layer of security by requesting the cardholder's billing zip code. This extra step can help strengthen your defense against possible chargebacks during a dispute if the billing zip code entered matches the information the card' issuer has on file. Beyond our real-time fraud prevention tool, entering a billing zip code for card-not-present transactions is the only reliable way to actively help fraudulent chargebacks from impacting your business.