For years, salon and spa owners could treat in-person payment fraud as a distant concern, something that happened to big-box retailers. Not to a business where the client, whose head you just shampooed, is standing right in front of you, card in hand. That assumption doesn’t hold up anymore. As payment methods evolve, so do the ways fraudsters exploit them. Several in-person fraud trends have been on the rise, and we’ve got the details on the top three happening across the industry, plus what salon & spa owners can do to stay ahead of them. Let’s dive in.
1. Refund Requests That Aren’t What They Seem
One of the more damaging forms of fraud doesn’t involve a stolen card or digital compromise, but rather, talking someone into making a mistake. A fraudster calls or emails a front desk team member, posing as corporate, a payment processor, or even a client, and manipulates them into processing a refund or discount to an unfamiliar card or account.
Because this kind of fraud exploits people rather than software, no payment system can fully prevent it on its own. The strongest defense is a clear, simple rule: Refunds only go back to the original payment method, and any request that comes in with urgency or bypasses normal procedure is a red flag and is independently verified.
2. Card-Present Fraud is Still Very Real
It’s a common misconception that fraud with a physical card in hand is rare. In reality, criminals still use stolen or counterfeit cards to make in-person purchases, often larger ticket ones like spa packages, med spa procedures, retail, and even memberships, hoping to get the transaction through before the real cardholder notices anything is amiss. EMV chip technology has made this harder than it used to be, but it hasn’t eliminated the risk entirely.
Requiring customers to insert or tap their card rather than swiping a card with an available chip, checking ID for larger transactions, and training staff to notice red-flag behavior at checkout all remain effective, low-cost ways to protect your business.
3. Legitimate In-Person Charges Get Disputed After the Visit
Not all in-person fraud happens at the moment of payment. In fact, some of it shows up weeks later. A client is charged in person for a service, no-show fee, or cancellation fee, then later disputes that same legitimate charge with their bank. Industry data shows this is one of the more common fraud issues salons & spas run into, and unlike a stolen card, there’s no way to catch it at the register since nothing was wrong with the transaction when it occurred.
The strongest defense is proper documentation. A clear no-show & cancellation policy listed across touchpoints in the client journey and an acknowledgement at booking is the way to go. Detailed client records tying each charge to a specific appointment and card are also great tools to help you respond to and defend this type of dispute. A clear documentation trail can make all the difference when it’s time to respond to a dispute.
Where Technology Can Help
For beauty businesses on MeevoPay, transaction protection works in two parts. MeevoPay Shield adds an additional layer of protection to online transactions, booking deposits, eGift card purchases, and self-pay transactions by evaluating them against numerous risk signals prior to approval. It flags known-fraudulent cards, emails, and devices so the same attempt doesn’t slip through. Chairside and at the front desk, protection comes from MeevoPay itself via EMV chip, tap & contactless terminals that shift counterfeit-card liability away from the merchant, as well as encryption of card data at the point of transaction, risk tools designed to help identify and block known fraudulent activity, and chargeback dispute support when you need it most. In the end, it absolutely pays to have the right security and fraud-prevention tools at your side.
In-person fraud in the beauty & wellness industry isn’t going away; it’s just changing shape. The businesses best positioned to stay ahead are those that combine well-trained teams and clear front-desk procedures with payment technology designed to protect transactions wherever they occur.
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