This is the final part of my blog regarding scams your employees may be running in your establishment without your knowledge. All of these scams are predicated on the customer paying with cash. These scams come from the book How to Burn Down the House by Peter Francis and R. Chip DeGlinkta. You can purchase the book here: http://www.amazon.com/How-Burn-Down-House-Bartenders/dp/0974867705
The “Broken” credit card terminal -Whenever a customer uses a credit card to pay for a meal, unscrupulous waiters may pretend that the credit card terminal isn’t working properly. They can simply disappear with the card for an extended period of time and then return with an apology that the terminal isn’t cooperating and he’s having trouble running the transaction. When the customer gets tired of waiting and chooses to pay with cash, the unethical waiter has many options on how to pocket the money. This scam is also easy to hide from employers because waiters can “act the part” in not understanding why the credit card terminal wasn’t working if questioned by management. Once the boss swipes the card again and it miraculously works, the employee can simply thank his boss for the help.
Light Eaters-If a customer happens to have a small appetite and doesn’t finish their meal, waiters can bring the entrée to the manager claiming that the customer didn’t care for it and that it should be voided from the check. When the entrée is removed, the waiter will charge the customer the original price for the meal and keep the money from the entrée that was voided.
Manager on Board-Managers can be dishonest too! Waiters and managers can partner up to scam business owners by delivering the check as usual, but then claiming they had to fully comp a meal due to customer complaints. They do this while secretly keeping the entire check for the whole dining party and split whatever cash they’ve been able to keep from the house.
If you would like to learn more about other potential ways in which business owners can be scammed by employees, purchase the book, How to Burn Down the House on Amazon.
Be sure to contact Mark at Tannen & Associates for all of your Merchant Card Services and POS System needs at (408) 888-9663.