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How do you prevent loyalty stamp fraud?

Four protections are enough: a delay between two stamps, a log of who stamps, traced corrections and cards that cannot be guessed. Paper offers none of them.

By The Fidelia team4 min read

You limit stamp fraud with four protections: a delay between two stamps, a log of who stamped, traced corrections and cards that cannot be guessed or copied. A paper card has none of these protections; a digital card has all of them.

Here are the most common ways to cheat, why paper is exposed to them and how to protect yourself without making life harder for your honest customers.

How do people cheat with a stamp card?

On paper, it is mostly simple things:

  • Homemade stamps. A customer draws stamps or uses a similar stamp.
  • Copies. A card is photographed or photocopied, then used several times.
  • Extra stamps at the counter. In the rush, one purchase gets two stamps, or a friend stamps for someone else.
  • Staff. Someone stamps for friends or for themselves.

In most shops it is rare, but it happens, and with paper you cannot check anything afterwards: the stamps are on the card, not with you.

What does a digital card protect?

A digital card lives in the customer’s phone, but the stamps are recorded on your side. That gives four protections.

A delay between two stamps

The same card cannot receive a new stamp for a set time. With Fidelia, the delay is 5 minutes by default, and you set it as you like. This prevents double stamps in the rush and attempts to get several for the same purchase.

A log of every stamp

Each stamp records who made it, where and with which device. You can therefore see afterwards who stamped what.

Traced corrections

Mistakes happen. The owner or a manager corrects the card in the dashboard with “Adjust stamps”; the reason and the author are recorded. Nothing is erased: a new line offsets the previous one. The history stays complete and nobody can “rub it out” afterwards.

Cards you cannot guess or copy

Each card has a random number, too long to guess. The barcode contains only that number, no name or other personal data. A photo of someone else’s card only gives a photo of a barcode, and the stamps stay with you. In addition, a card whose reward is ready must be used first before it receives more stamps: a reward can only be taken once.

What should you do besides the technology?

Technology solves part of the problem, habits solve the rest.

  1. A rule everyone knows. One stamp per purchase, or per visit. Write it on the card or the poster.
  2. Stamp at the till only. No stamp after the fact without a purchase.
  3. One login per person. Everyone has their own access to the scanner: you can see who did what, and nobody lends theirs out.
  4. A glance at the log from time to time. You do not need to check everything.
  5. Talk about it. A good share of team slip-ups come from vague rules, not ill will.

Should you worry a lot?

Less than you might think. An extra stamp costs you little, and the real cost of a reward is often modest: read the real cost of a reward. What costs more is complicating the card for all honest customers in order to stop a few. Rely on simple protections the customer does not see.

Paper or digital: the comparison

Paper card Digital card
Delay between two stamps No Yes, you set the duration
Log of who stamped No Yes, every stamp is recorded
Corrections Impossible By the owner or a manager, traced, nothing erased
Can be copied Yes Random number, stamps stored with you

To move from paper to digital, see replacing a paper loyalty card, or transferring your paper stamps during the switch. Prices are on the pricing page.

In short

Fraud is rarely a big problem, but it is easy to protect against. A delay between stamps, a log, traced corrections and cards that cannot be copied: you can then focus on what matters, getting your customers to come back.

Questions

What delay between two stamps?

With Fidelia, the default delay is 5 minutes between two stamps on the same card. You can make it shorter or longer in the settings.

Can a stamp added by mistake be corrected?

Yes. The owner or a manager corrects the card in the dashboard with "Adjust stamps"; the reason and the author are recorded. Nothing is erased: a new line offsets the previous one.

Can you tell who stamped?

Yes. Each stamp records the team member, the location and the device.

Can a card be copied?

Each card carries a random number, too long to guess, and the barcode contains only that number. The stamps are stored on your side, not on the card.

How many customers cheat?

We have no reliable figure. In most shops it is rare. Clear rules and a few discreet protections beat a complicated card for everyone.

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