Merchandise returns are a way of life in the retail industry, but with the National Retail Federation (NRF) pegging return fraud as costing retailers a collective $9.6 billion annually, it makes sense to take steps to ensure that as many returns as possible are truly legitimate.  A point of sale system, such as pcAmerica’s Cash Register Express, can serve as great ammunition in the fight against return fraud.

How? For starters, you can use the solution to post and display special instructions/notes about habitual “returnees”. When these individuals initiate a credit or debit card transaction, the information is readily available to store employees, who can then take extra steps to scrutinize the return and follow return policies. Have customizable receipt-printing software? Using it to post your return policy on your receipts, and consider changing the messages frequently, minimizes fraudsters’ use of fake receipts.

But this is just the beginning. Your point of sale system can track the number of returns accepted by each sales associate, enabling you to determine if and when a single employee is processing an unusual number of returns. You can then scrutinize the return information closely to ensure that policy is being followed and everything is on the up and up. Similarly, enlist your point of sale system to assign sales associates to different security levels. This lets you determine what information your employees have access to,  potentially eliminating internal return fraud.

Additionally, with a good point of sale solution in place, you can set a cashier return limit, ensuring that you, rather than an employee who may or may not be engaged in fraudulent activities, hold the final authority on bigger-ticket returns. You can view multi-store customer information—in other words, see whether a given customer purchased an item at one store and is then trying to return it at another store. (This alone doesn’t signal fraud, but may cause associates to take a closer look at the return just in case).

Finally, marshal your point of sale system to track return rates by the day, week and month. If the numbers rise significantly, you can take extra measures to examine why. Don’t just take chances with returns; the cost is too high. Let point of sale technology play a role in loss prevention to keep more cash in your wallet.

Visit pcAmerica to find out more about choosing the right point of sale system to fit the needs of your business.