Loyalty stamp fraud can be stopped without making life hard for honest customers. Four safeguards do the most good: a cooldown between stamps, a log of who stamped, logged corrections and cards that cannot be copied or guessed. Paper cards have none of that, and digital cards have it all.
Here we go through the most common ways of cheating, why paper cards are especially exposed and how to protect yourself without it getting complicated.
How does stamp fraud usually happen?
With paper cards it is mostly simple things:
- Home-made stamps. The customer has a similar stamp or draws the stamps in.
- Copies. A card is photographed or copied and used several times.
- Extra stamps at the till. In a busy moment someone gets two stamps for one purchase, or a friend stamps for someone else.
- Staff. Someone on staff stamps for friends or for themselves.
In most shops this is rare, but it happens, and with paper cards you have no way of finding out afterwards. The stamps are on the card, not with you.
How does a digital card protect you?
A digital card sits in the customer’s phone, but the stamps are stored with you. That gives four safeguards that paper cards lack.
A cooldown between stamps
A cooldown means the same card cannot get a new stamp within a set time. At Fidelia it is five minutes by default, and you decide whether you want it longer or shorter. It stops double stamps in the rush at the till and attempts to get several stamps for the same purchase.
A log of every stamp
Every stamp is saved with which team member made it, at which location and with which device. So you can see afterwards who stamped what.
Corrections that are logged
Mistakes happen. The owner or a manager corrects the card in the dashboard with “Adjust stamps”, gives a reason, and the log shows who made the change. Corrections delete nothing: a new row is added. The history is therefore complete, and nothing can be “rubbed out” afterwards.
Cards that cannot be guessed or copied
Every card has a random number that is too long to guess. The barcode contains only the number, no name or other personal information. A photo of someone else’s card gives no more than a photo of a barcode, and the stamps are with you. In addition, a card that is at “reward waiting” has to be redeemed before it can get more stamps, so a reward can only be taken once.
What can you do beyond the technology?
Technology solves part of it, routines solve the rest.
- One rule everyone knows. One stamp per purchase above a certain amount, or per visit. Write it on the card or the stand.
- Only stamp at the till. No stamps afterwards without a receipt or purchase.
- Give staff their own login. Then it is visible who did what, and nobody needs to borrow someone else’s account.
- Look at the log now and then. You do not need to review everything, but a quick look gives peace of mind.
- Talk about it. Most fraud by staff comes from unclear rules, not ill will.
How much should you worry?
Less than you think. A single extra stamp costs you little, and the real cost of a reward is often low, see what a reward really costs. What costs more is making the card complicated for all the honest customers to stop a few. Put your energy into simple safeguards the customer does not notice.
Paper card compared with a digital card
| Paper card | Digital card | |
|---|---|---|
| Cooldown between stamps | No | Yes, you set the time |
| Log of who stamped | No | Yes, every stamp is saved |
| Corrections | Not possible | Owner or manager, with a reason |
| Can be copied | Yes | Random card number, the stamps are with you |
To read more about making the switch, see from paper card to digital. Prices are on the pricing page.
Summary
Fraud is rarely a big problem, but it is easy to protect yourself. Use a cooldown, look at the log, let the owner or a manager correct mistakes with a logged reason and choose cards that cannot be copied. Then you can focus on what actually brings more regulars.