Return fraud is nothing new in the business world. For years, thieves have been apprehended for such acts as stealing goods and then returning the items to the store for credit. Buying an expensive item, then switching tags with an inexpensive "knock off" item and returning it as the original is another type of return theft. A third example involves using receipts found in parking lots or trash bins. The thief collects items in the store that are shown on the discarded receipt, and then uses the receipt to obtain credit for merchandise "returned."
In a recent article by Sharon Tay for CBS, another legal but troublesome shopping movement was reported –
"returnaholics" who constantly buy numerous products, try them out at home, and then return them. Not out to break the law, they argue that they just want to get the most for their money.
Return fraud of any kind is detrimental to sales, gross margins, inventory management and profitability. Losses include such things as time and money spent on processing the return itself, restocking, and disposition of the returned item. In addition, merchants have to determine how to deal with the fraud without creating restrictive policies for legitimate customers.
Processing your returns through your CounterPoint Point of Sale Software allows you to automatically tie receipted returns to the original receipt value. In addition, collected and stored information such as customer name, address, phone number, an driver’s license number, along with return history, helps identify repeat offenders whose purchase/return profile is consistent with return fraud. Once these offenders are identified, proactive solutions can be implemented to prevent future abuses of the system.
CounterPoint POS Software can help you track return fraud in your business. Call us for more information at 800-672-4806 or email us.