Proof of purchase

Proper proof of purchase practices are critical in retail today. We witness this firsthand through our support channels for retailers who contact us with questions and concerns about proof of purchase issues.

I am not a lawyer, and I would suggest asking the appropriate authorities if you have any queries.

The Significance of Proof of Purchase

• Customer Assurance: Providing tangible evidence of transactions enhances customer confidence.
• Legal Compliance: Adherence to proof of purchase regulations is a legal requirement.
• Conflict Resolution: Proper documentation significantly streamlines dispute management.

Australian regulations

Transactions $75 and above

Should be supplied immediately

Transactions under $75

Proof should be provided upon customer request made within seven days. This can be a problem if they pay in cash. 

Acceptable Forms of Proof

Some examples of proof of purchase:

• Cash register receipts
• Handwritten receipts: I recently had a client whose customer demanded extra detail. He felt that the cash receipt did not have enough detail to show the tax implications of the transaction explicitly, so my client rewrote it in an invoice book and stapled the cash receipt to it.
• GST tax invoices
• Financial statements (credit/debit card, bank)
• Lay-by agreements
• Digital receipts (email, SMS)
• Photographic evidence of receipts
• Warranty cards with purchase details:
• Serial numbers linked to supplier databases can be a problem. A client disputed that he had sold the item, while a supplier stated they had.
   

It's crucial to note that Australian Consumer Law doesn't explicitly define "sufficient proof of purchase. The requirement is that customers must reasonably demonstrate proof of purchase. 

Modern POS software can help you; one client showed a computer listing to a tribunal on the day the person claimed to have brought the item, but his shop had not sold this product. Another report that no sale for the claimed amount had occurred. We're moving towards a world where digital receipt proof of purchase will become the norm rather than the exception.

Essential Receipt Information

All proofs of purchase must include:

Managing Complex Scenarios

Late Requests and Itemized Bills

While charging for receipts after seven days is permissible, it's generally inadvisable due to potential negative customer impact.

For itemised bill requests:

These tend to be customers with specialised needs, and often, the retailer needs to go manual. In this case, I suggest keeping a record of that receipt. In a dispute, and the customer demands an itemised bill, you should immediately inform them that you reserve the right to charge them for the difference if it exceeds the original amount.

Dispute Resolution

In cases of disputed purchases without clear proof, it's essential to:

1. Thoroughly investigate your POS System transaction records to check the transaction
2. Consider alternative forms of evidence
3. Inform customers about potential additional costs in itemised bills
4. Balance customer rights with fraud prevention measures
   

   Handling Difficult Situations

   Several times, people have come into shops with what they claimed were faded receipts—essentially blank pieces of paper. In such cases, it's crucial to ask for alternative evidence. Remember, if a customer can reasonably demonstrate they purchased an item, denying their rights could be breaking the law.

Effective Record Management

The ACCC mandates a 5-year record retention period. To manage this effectively:

1. Implement a reliable POS system
2. Regularly back up data
3. Archive old records before deletion
4. Keep the backups; you never know when you need them.

Best Practices

1. Staff Training: Ensure a comprehensive understanding of policies and procedures.
2. Digital Transition: Utilise electronic receipts for improved storage and retrieval.
3. Customer-Centric Policies: Prioritise customer satisfaction within legal boundaries.
4. Clear Guidelines: If in doubt, seek advice from people who can help; most employee organisations can help here.

Conclusion

Adequate retail compliance practices are fundamental to building customer trust and safeguarding business interests. While legal compliance is crucial, the ultimate goal is to foster positive customer relationships while protecting the business.

If you want to know more, click here.