BakerBee7468 Posted 3 May 2013 , 11:13pm
post #1 of

I researched about possible scams that could arise and I've found there are plenty of scams involving orders over the phone, but have any of you had any problems with scams in person? Such as Fraudulent charges, stolen credit cards and the like.... also what measures have u taken to prevent such problems?

36 replies
bct806 Posted 4 May 2013 , 3:06am
post #2 of

Possible scams from what? Customers?

docofthedead Posted 4 May 2013 , 4:36am
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there are several great websites dedicated to warning people of current scams.  If you think you may be a target, go check out scamwarners.c o m  and you can post your questions.  You can also scroll through the forums and find other people that have been a vicitm of the same or similiar scam... HTH

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bct806 Posted 4 May 2013 , 4:52am
post #4 of
Quote:
Originally Posted by docofthedead 

there are several great websites dedicated to warning people of current scams.  If you think you may be a target, go check out scamwarners.c o m  and you can post your questions.  You can also scroll through the forums and find other people that have been a vicitm of the same or similiar scam... HTH

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I love the signature quote! I am an Army wife myself. My husband is also in an Airborne unit.

docofthedead Posted 4 May 2013 , 5:43am
post #5 of
Quote:
Originally Posted by bct806 

I love the signature quote! I am an Army wife myself. My husband is also in an Airborne unit.

We are a tough breed aren't we?!  lol  Both my son and husband  are deployed right now, but are THANKFULLY on the way home very soon!  I expect our son home within a week, and husband by the end of the month! What Airborne unit is he in??

bct806 Posted 4 May 2013 , 6:33am
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Wow. I am still new to all of it. He deployed about a month after we got married. Got home in November. He's in 7th group. Stationed at Eglin AFB. It definitely takes a special kind of person!

BakerBee7468 Posted 4 May 2013 , 9:38pm
post #7 of

I meant customers trying to scam me. I've worked in retail awhile and the ways I've seen them scam the system is ridiculous. Although i know it's not exactly the same i know that there are people out there that would try to get free product. For instance, with regards to accepting credit cards whether it's for the total amount or just the remaining balance after the deposit, what if someone tries to give you a stolen credit card to pay for their order or if they encode someone else's information on the back of their card so that they give you their card but someone else's card is charged instead?
 

BakerBee7468 Posted 4 May 2013 , 9:40pm
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I applaud both of you by the way for being army wives, i don't know how u handle it. I would never have any peace of mind, i would always be worried for their safety. I don't think i would sleep a wink. You do have to be tough to be military.

BakerBee7468 Posted 4 May 2013 , 9:42pm
post #9 of

Oh and just for clarification. i haven't been scammed but I'm being proactive by trying to keep it from happening to me. Learning all the ways that someone can scam, other than the ways i already know about.

jason_kraft Posted 4 May 2013 , 10:21pm

AI wouldn't worry too much about stolen credit cards. If someone steals a card they will likely be buying durable goods that can easily be resold in order to make a profit. Cake is neither durable nor can it be resold easily.

The issues with accepting credit cards are how easy it is for a customer to dispute a charge and the merchant account fees. If you are paying a 3% fee and you have an average of 3 orders per week, every 8 months you are working one week without getting paid.

BakerBee7468 Posted 4 May 2013 , 10:41pm

Exactly, that's why I've been going back and forth between accepting credit cards or not. I was thinking cash only, but with people always paying with plastic i was wondering if that would hinder me in my customer base. I would make it clear  that i only accept cash if i was to do that. I realize that thieves buy/ steal  things they can resell but i thought about like you said someone disputing the charge with their credit card company. my fees wouldnt be as high as 3% but still i'm trying to figure out if there is a way to not have to deal with this, How does it work when someone disputes a charge on their card? I mean i would think the credit card company has to do alot of investigating to see if it was a legit dispute or just someone buying things on credit and then trying to get out of paying it because they just want stuff for free
 

jason_kraft Posted 4 May 2013 , 11:12pm

AGenerally credit card companies tend to start out favoring the customer (unless they have a history of unfounded disputes, as you mentioned) so the merchant would have to show proof that the order was fulfilled. If the complaint is a subjective one (especially if it's about something that can't be documented, like taste) it could go either way.

I don't recommend cash only, accepting personal checks should be fine as long as you give them enough time to clear and have a process in place for checks that bounce.

BakerBee7468 Posted 4 May 2013 , 11:25pm

I'm thinking i won't accept checks because of the time they take to clear, with it being up to a week or more in some cases. don't want to have to worry about checks that bounce. cash is easy to check to see if its fake and i'm thinking i'll accept forms of plastic, since i've worked in retail awhile i can usually spot fraudsters since they all act the same. Nervous to get the transaction over with and not wanting to show any forms of id or personal information. Of course with the cake industry i'm not too worried about that as people do have to give up information in the process somewhere.
 

docofthedead Posted 5 May 2013 , 4:23am
Quote:
Originally Posted by BakerBee7468 

I applaud both of you by the way for being army wives, i don't know how u handle it. I would never have any peace of mind, i would always be worried for their safety. I don't think i would sleep a wink. You do have to be tough to be military.

I haven't slept in 9 months..lol  BUT..one comes home within a week, and the other will be home by then end of the month!  I'll probably sleep for 3 days after that!   lol

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docofthedead Posted 5 May 2013 , 4:28am
Quote:
Originally Posted by jason_kraft 

I wouldn't worry too much about stolen credit cards. If someone steals a card they will likely be buying durable goods that can easily be resold in order to make a profit. Cake is neither durable nor can it be resold easily.

The issues with accepting credit cards are how easy it is for a customer to dispute a charge and the merchant account fees. If you are paying a 3% fee and you have an average of 3 orders per week, every 8 months you are working one week without getting paid.

I agree with Jason on this...

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BakerBee7468 Posted 5 May 2013 , 5:10pm

A

Original message sent by docofthedead

I haven't slept in 9 months..lol  BUT..one comes home within a week, and the other will be home by then end of the month!  I'll probably sleep for 3 days after that!   lol :USA:

I could never imagine. And to have two people away instead of one. That's double the worry. I'm glad you'll be getting some peace here soon.

PTDixieGal Posted 5 May 2013 , 6:22pm
Quote:
Originally Posted by docofthedead 

I agree with Jason on this...

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They're right. Speaking as someone who works in retail, MOST of the time when we've had issues with anything being stolen, it's durable goods. On occasion, you may have someone steal food, but those cases are few and far between (although I did catch a guy who had not paid for bologna and was walking through the store and eating it right out of the package).

BakerBee7468 Posted 5 May 2013 , 7:20pm
Quote:
Originally Posted by PTDixieGal 

They're right. Speaking as someone who works in retail, MOST of the time when we've had issues with anything being stolen, it's durable goods. On occasion, you may have someone steal food, but those cases are few and far between (although I did catch a guy who had not paid for bologna and was walking through the store and eating it right out of the package).

I have worked in retail a long time and I've seen people steal anything they can get their hands on. If they want it they will find a way to get it. Whether it's stealing outright by just taking it of the shelf and leaving or using a stolen credit card. These days people don't need someone's actual card to steal. People will use their actual card with someone's else's info encoded on the back or they'll use a visa/master card/ american express gift card with someone elses info. I've seen people steal food too. Had one guy stealing large cans of red bull, He just came in and Took 2 off the shelf and left. People have also came in with phony coupons they made to try and buy gift cards or other money services.  Although like i said selling baked goods isnt exactly the same as retail, i know that but nothing surprises me anymore. I wouldnt be surprised if someone tried stealing a cake in someway.

PTDixieGal Posted 8 May 2013 , 3:11am
Quote:
Originally Posted by BakerBee7468 

I have worked in retail a long time and I've seen people steal anything they can get their hands on. If they want it they will find a way to get it. Whether it's stealing outright by just taking it of the shelf and leaving or using a stolen credit card. These days people don't need someone's actual card to steal. People will use their actual card with someone's else's info encoded on the back or they'll use a visa/master card/ american express gift card with someone elses info. I've seen people steal food too. Had one guy stealing large cans of red bull, He just came in and Took 2 off the shelf and left. People have also came in with phony coupons they made to try and buy gift cards or other money services.  Although like i said selling baked goods isnt exactly the same as retail, i know that but nothing surprises me anymore. I wouldnt be surprised if someone tried stealing a cake in someway.

That part about the coupons is true too. People will do anything.

Annabakescakes Posted 8 May 2013 , 3:36am

A

Original message sent by PTDixieGal

[QUOTE name="docofthedead" url="/t/757916/scams#post_7390711"] I agree with Jason on this... :USA: [/QUOTE] They're right. Speaking as someone who works in retail, MOST of the time when we've had issues with anything being stolen, it's durable goods. On occasion, you may have someone steal food, but those cases are few and far between (although I did catch a guy who had not paid for bologna and was walking through the store and eating it right out of the package).

How did you "catch him"? How do you know he didnt intend to pay for the bologna? Because it isn't stealing until you walk outside the doors with it. I never did it before I had kids, but after I had them, I remember opening a box of Teddy Grams, the first time I did it, and having my 1 year old twins eat them to stop yelling they were hungry, while I shopped. I was nervous, but have since graduated to drinking my Gatorade while shopping and handing an empty bottle to the clerk to scan. I would never eat though, since that requires clean hands. In my own defense, I would pay first, but they commonly have 1 line with a minimum of 4 people in it, and it takes a half hour to get through it.

kikiandkyle Posted 8 May 2013 , 4:43am

AI see people eating food they haven't yet paid for in the grocery store all the time, I unfortunately had to pay for a banana my toddler managed to break open and eat once but luckily it was Trader Joes where they're sold by the unit! The cashier said it was totally fine, so long as you pay.

tracyaem Posted 8 May 2013 , 11:58am

The only scam I've run into is the hearing impaired, want 400 cupcakes picked up by courier one. I've gotten that a lot, but just delete and move on with my life.

 

I only accept cash or credit cards for final payment. I started selling a little less than a year ago and within the last few months tipped the point where I'm selling more to strangers and less to family/friends so I've become a bit more cautious about forms of payment and a bit more diligent about requiring deposits. I think to be competitive, credit cards need to be accepted. Cash only isn't practical, especially once you start selling orders for several hundred dollars a piece. And for deposit purposes, Paypal is fantastic (minus the fees, of course!). I tend to do almost all of my communication via email so it's super easy to send a Paypal invoice and collect deposits. I will accept checks, but only for deposits so there's plenty of time for it to clear. And I let the customer know that until the check clears their date is not reserved. Most choose the Paypal option.

 

And I agree that the credit card fees stink, but I think it's just another cost of business that needs to be worked in. I haven't been scammed accepting one yet, so fingers crossed. And I tend to agree with others that a custom cake would not be the likely target of someone with a stolen card. Usually there's several weeks of back and forth communication with the customer, it's not an impulse buy. And if you require a deposit you would hopefully find out about the fraud well in advance of any actual baking or delivering of the final product.

BakerBee7468 Posted 8 May 2013 , 2:49pm

AI'm gonna accept Paypal as well and cash. I was going to accept cash only for deposits and then accept cash, credit for final payment but taking a check for deposits is an option too. I hadn't thought of taking checks for deposits only and then waiting for it to clear before confirming orders. I initially wasn't going to accept checks. My first customers will be people I know and people they know but I figured I should have everything figured out for when I have strangers place orders.

BakerBee7468 Posted 8 May 2013 , 2:52pm

APayPal gives u chances to get your fees down depending on what services you use and how many sales u do. Like Jason said we do have to worry about someone calling the credit card company to dispute the charge

jason_kraft Posted 8 May 2013 , 4:45pm

AFYI it's also easy for a customer to file a PayPal dispute, and since they are not a real bank they can do things like freezing your entire account during a dispute.

Annabakescakes Posted 8 May 2013 , 5:06pm

A

Original message sent by kikiandkyle

I see people eating food they haven't yet paid for in the grocery store all the time, I unfortunately had to pay for a banana my toddler managed to break open and eat once but luckily it was Trader Joes where they're sold by the unit! The cashier said it was totally fine, so long as you pay.

Thank goodness it is by the unit, or else they would've had to pop your toddler on the scale, right? Lol

Now my ex stepfather (a real tool) would act like he couldn't let go of my Mother's hand, and would use his free hand to stuff merchandise in his pockets, then pull it all out into the belt once we got up there... It was horrifying! (They were "so in love" they drank out of the same cup, too :-P )

BakerBee7468 Posted 8 May 2013 , 5:52pm

A

Original message sent by jason_kraft

FYI it's also easy for a customer to file a PayPal dispute, and since they are not a real bank they can do things like freezing your entire account during a dispute.

That I did know, though people who buy things through PayPal don't qualify for buyer protection when they buy things in person. They can still file a dispute but they urge people to contact the seller they bought from in the event they have a problem. Likewise for the seller. There is no seller protection for items sold to people in person.

BakerBee7468 Posted 8 May 2013 , 5:56pm

A

Original message sent by Annabakescakes

How did you "catch him"? How do you know he didnt intend to pay for the bologna? Because it isn't stealing until you walk outside the doors with it. I never did it before I had kids, but after I had them, I remember opening a box of Teddy Grams, the first time I did it, and having my 1 year old twins eat them to stop yelling they were hungry, while I shopped. I was nervous, but have since graduated to drinking my Gatorade while shopping and handing an empty bottle to the clerk to scan. I would never eat though, since that requires clean hands. In my own defense, I would pay first, but they commonly have 1 line with a minimum of 4 people in it, and it takes a half hour to get through it.

It depends on the stores policy and how they feel. At the store where I worked it was considered stealing if you opened product before paying for it whether you've left the store or not.

BakerBee7468 Posted 8 May 2013 , 6:04pm

AI've seen many a person get confronted by store employees for opening product before its paid for

ellavanilla Posted 8 May 2013 , 6:13pm

I wouldn't be worried about face-to-face customers scamming me. I've only had two bounced checks in 8 years and both were from a friend who made a mistake. 

 

There are 419 scams out there and if you're in biz long enough you will receive emails from people trying to get you to accept a large bank draft for a cake and return some of the money to them in cash.  

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