Every retail business faces urgent situations, such as crashed POS systems during peak sales periods and sudden staff absences. But what happens when procedures and systems aren't in place to address these urgencies?

This real-world example illustrates how poor password management turned a "VERY urgent" matter into a seven-month saga with significant business implications.

Inaccessible Financial Records

In December 2024, our team received a concerning call from an accountant regarding one of our clients, Louis, who had unexpectedly fallen ill and moved to a nursing home. The accountant needed to access Louis's financial records stored on his computer to finalise his affairs. Unfortunately, the computer was not working. As the accountant said, it was "VERY urgent."

So we immediately offered assistance. We asked him to send that shop's computer to our engineering bay for immediate repair. What followed was a series of delays and complications that transformed this "urgent" situation into a long ordeal:

Week 1

We heard nothing from the accountant after our initial conversation.

Week 3

The accountant's assistant arrived unannounced with the computer. Upon examination, we discovered that the operating system had been deleted. So we said it would take a few hours to see the damage. The assistant left and said to contact them as soon as possible when we had an answer, as it was urgent.

We got the computer working but discovered that it was protected by many passwords, which was unsurprising, as most financial computers are similarly protected. We recommend it; click here. 

We notify them of this promptly.

Week 5

After notifying them about the password issues, we finally received some passwords. However, during our investigations, we discovered we needed additional credentials for several protected areas. We told them this.

Week 9

We received a follow-up for them. The accountant acknowledged the urgency but mentioned he was going on holiday soon and would be gone for a week.

Week 13

The accountant provided more passwords, which again proved insufficient.

Week 17

We received a USB stick with some information. It helped, but the accountant announced he was departing soon for a month-long European holiday.

Now

What began as a "VERY urgent" matter was now guaranteed to extend beyond seven months, potentially having profound implications for Louis's financial affairs.

What hurt is that it was entirely preventable.

Password management best practices

This scenario highlights one of the most significant vulnerabilities in many retail businesses: the single point of failure. In Louis's case, he was the only person with access to critical financial information. This common but dangerous practice leaves businesses extraordinarily vulnerable when that person becomes unavailable for any reason.

For retailers, I have seen this risk extend beyond financial data to include:

• POS system administrator credentials
• Supplier portal logins
• Banking and payment gateway access
• Inventory management system passwords
• Customer relationship management data
• Cloud storage accounts
• Social media and online marketplace logins

If only one staff member can access these systems, your business is one unexpected absence away from significant operational disruption.

Consider the potential costs of password-related business disruptions.

Crisis management for businesses

The other revealing aspect of this situation was the disconnection between the stated very urgent and the actual response time. While the accountant consistently emphasised the urgency of resolving Louis's affairs, somehow, I did not see it. Cynically, I wonder if the accountant did not benefit from this delay.

Business continuity

The best emergency response planning isn't seen in what happens, but in what doesn't happen.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Whether you want it or not, you have an online presence today. Many individuals and organisations search for you and your business on Google. Now when someone searches for you or your business name on Google, what do they come across? If the results are poor, this may raise concerns.

With Google's recent privacy updates for 2025, we now have more control over the information in our search results. It allows you to manage your Google digital footprint more effectively.

The new "Results About You" Hub

Google has overhauled its "Results about you" tool to make it easier for you to protect your personal information online. It represents a significant improvement in functionality that can benefit you.

It actively scans search results for personal information and alerts you when it discovers details such as your phone number, email address, or physical location.

Setting up the tool is easy.

Click here.

Setting up this privacy tool is straightforward and worth the minute it takes:

1. Visit the Results About You page through your Google account. Yes, you need a Google account.
2. Click "Get started" to enable the tool
3. Enter your full name and any other names you use professionally. A woman, for example, might put in her married and maiden name.
4. Add your personal contact information, including home address, phone number, and email addresses
5. Verify your information is correct and set up notification preferences
6. Confirm and save your settings

Once configured, Google will continuously monitor its search results for the personal information you've specified; soon, you will receive notifications when something is found.

Google will place the information in your hub for review. It also maintains a comprehensive overview of all your current and previously approved removal requests in one convenient location to monitor.

New Removal Process

I like the improvement to the removal process, which makes it significantly easier to request the removal of personal information directly from search results.

Next to each listing are three dots. Clicking on these dots will give you three clear options.

1. "It shows my info"—Use this to remove sensitive information like phone numbers, email addresses, home addresses, credit card details, and login credentials. It's a nightmare if your credit card details are online.
2. "I have a legal removal request" - For content that violates Google's policies.
3. "It's outdated, and I want to request a refresh"—This is to update outdated information.

Refreshing Outdated Content

For many retailers, outdated information can be as problematic. You may have moved locations, changed your business hours, or updated your contact information. Now, Google's new refresh option addresses this issue quickly.

What I also like about it is that previously, we had to wait for Google's regular crawling schedule, which could take weeks. Now, by clicking the three dots next to an outdated search result and selecting the refresh option, you can immediately prompt Google's systems to recrawl the page and retrieve the most current information.

This feature is particularly valuable for retailers who have recently:

• Relocated their shop
• Updated their business hours
• Changed contact information
• Refreshed their product offerings
• Rebranded their business

Why This Matters for Australian Retailers

For retailers in Australia, maintaining accurate online information is essential for customer trust and business operations. Outdated store locations, incorrect opening hours, or exposed personal contact details can lead to customer frustration and lost sales.

Beyond Google: Comprehensive Online Privacy

While Google's new tools are powerful, remember that they only affect Google Search results. The original content still exists on websites unless you contact those owners directly. For comprehensive online privacy management, consider these additional steps:

1. Regularly audit your business listings across all platforms (Google Business Profile, Yelp, TripAdvisor, etc.)
2. Contact directories and websites directly to update or remove outdated information
3. Consider using a professional reputation management service for ongoing monitoring. I have never used these services, but I am told that Incogni is a good service for a person, costing about $8 US/per month. If there is enough interest, I will track down another group deal.

The Future of Online Privacy

As privacy concerns grow worldwide, search engines and online platforms will likely offer more advanced tools for managing personal information. In this context, Google's 2025 privacy updates mark a significant step towards empowering users to control their online presence better.

The government has announced plans to ban debit card transaction fees, potentially starting January 1, 2026. This proposed ban, however, doesn't extend to credit card transactions.

A Global Trend in Payment Practices

In truth, this banning of debit surcharges was expected. Many countries, including the European Union and China, have implemented similar bans. Australia is now catching up with this global trend in consumer protection and payment fairness.

The Current Landscape: Widespread Surcharges

Today, many organisations, including government authorities, charge these fees. For instance, the Australian Taxation Office (ATO) imposes surcharges on card payments. This practice is widespread across various sectors and affects consumers daily.

Consumer Frustration: The Hidden Costs of Convenience

Many consumers, myself included, are frustrated with the current situation. It's common to hear complaints. I know I am not the only one who doesn't like that a $7.50 coffee and doughnut is charged at $8.00. If I am told it's $7.50, I get a receipt for $7.50, and in the bank, I see $8.00.

This sentiment is extreme here when the surcharge seems disproportionate to the transaction amount. From my extensive research into bank systems, I can confidently say that the cost of processing a $7.50 debit transaction is nowhere near 50 cents. Taking money from one account and putting it into another cost the bank no more than a few cents.

Potential Impacts on the Retail Scene

The ban on debit card surcharges will likely have far-reaching effects on retail. Here are some potential economic points to consider:

Increased Consumer Spending

By removing a barrier to debit card use, we might see a slight increase in overall consumer spending. The absence of surcharges could encourage more frequent use of debit cards, potentially leading to more transactions.

Acceleration of Cashless Trend

Australia is rapidly becoming a cashless society, and this ban will accelerate this trend. What is keeping cash going is the lower fees to the consumer. If debit cards become even more cost-effective for consumers, they will use them more.

Potential Price Increases

Some businesses might have to increase their prices depending on how this is implemented. We already have too much inflation that refuses to go away, potentially exacerbating the issue.

Changes in the Banking Sector

Today, these fees play a significant role in banking pricing. If banks are not making money from these fees, what adjustments will they make to their business charges? This is a crucial question that needs addressing.

Retailers' Concerns: Questions That Need Answers

Here are some questions that I think retailers need to ask now while people are talking about these changes, If they miss this opportunity, what you will find is that the banks will talk, consumer groups, government and since retailers are not talking what will come out of it?

1. Costs: Who will pay for these costs if fees are eliminated? Retailers should be concerned about who will absorb these costs if surcharges are banned.

2. Fee discrepancies: There's a noticeable difference in processing fees charged to small businesses compared to large corporations. Why are small businesses often charged up to twice as much? The costs surely are not that much more!

3. Premium Card Fees: Retailers are often charged higher processing fees so the bank customers can get benefits like Qantas points. Is this justifiable?

4. Card-Specific Surcharges: Retailers cannot charge different surcharges for different types of cards. The ACCC is wrong to make it mandatory to charge the same fee for a standard Visa card and a premium Visa card.

5. Bank Fees: Why are our debit and credit card fees so much higher than those of many European countries and China? This deserves a thorough investigation.

6. Unfair fees: Unlike large retailers who can negotiate better rates with banks, small businesses often pay double the fees for card processing. Besides being unfair, it means that the effect of these costs will have more impact on them.

Moving Forward: The Need for Dialogue

As we approach the potential implementation date, consumers and businesses must stay informed about these changes. Retailer representatives should engage with the government to address their concerns.

Moreover, this presents an opportunity to review and potentially overhaul Australia's card payment system.

The Future of Payments in Australia

Today, about 12% of transactions are made using cash, down from 27% five years ago. We're rapidly moving towards a cashless society.

Conclusion: A Complex Issue Requiring Careful Consideration

In conclusion, while the proposed ban on debit card surcharges is generally positive for consumers, other stakeholders have legitimate concerns. The government must carefully balance consumer protection with the financial realities retailers face.

Frequently Asked Questions (FAQ)

Q: Are there any exceptions to the debit card surcharge ban for specific industries or transaction types?

A: As of now, I have heard no talk of any exceptions being announced. The government will likely provide more details as the policy is developed.

Q: What measures will be taken to ensure businesses don't increase prices to offset the loss of surcharge revenue?

A: I am guessing here, but I suspect the Australian Competition and Consumer Commission (ACCC) may monitor for unfair price increases.

Q: How will the ban impact digital wallet payments and mobile payment platforms?

A: I am wondering about this. Apple, for example, has a special fee. This is an overseas fee, so it's unclear whether it's covered here. So, we do not know whether this ban applies to all debit card transactions made through digital wallets and mobile platforms.

Q: How will this affect loyalty programs or cashback offers tied to card usage?

A: The ban may affect these programs. I am worried that if the banks face reduced revenue from merchant fees, they might move to a retailer-pay model.

Q: What support or resources will be available to help small businesses adapt to these changes?

A: The government hasn't announced specific support measures yet; retailer associations should investigate.

Q: How might this affect international transactions or tourists using foreign-issued cards in Australia?

A: Who knows? In this situation, the merchant may be charged the fee.

Q: How will this impact the competitiveness of different payment methods in the Australian market?

A: It makes debit cards more competitive compared to credit cards and probably cash.

Many details will need to be developed and implemented.

The recent legal action by the ACCC against Coles and Woolworths is a shocker. Focusing on allegedly misleading discount campaigns will bring retail pricing strategies under intense scrutiny.

What's at Stake in the ACCC vs. Supermarket Giants Case?

At the heart of this legal battle are the "Prices Dropped" and "Down Down" campaigns run by Woolworths and Coles, respectively. The ACCC contends that these promotions were misleading due to artificial price inflation before the discounts. 

Read what they are saying about one item here.

Now, in total, the ACCC is taking to the Federal Court:  

• Woolworths: For 266 products affected over 20 months
• Coles: For 245 products affected over 15 months

The outcome of this lawsuit could have far-reaching implications on our pricing strategies, especially in our current never-ending inflationary environment.

The Numbers

These aren't small numbers; the potential penalties are significant, $50 million for each breach. That should be enough to make any retailer take notice.

A Common Scenario

Imagine this scenario: You've been selling an item for $6 for a while. Your supplier increases their price to $5, so you bump your selling price to $10. Then, a week later, you decide to run a 20% "discount" promotion, bringing the price down to $8. In retail, this is relatively common.

Based on what the ACCC is saying, your initial pricing and cost-based increase are standard practices, so that is okay here, but that "discount" promotion could land you in hot water. Why? Because your discounted price of $8 is higher than your original long-term price of $6. A week is hardly a reasonable period.

The Grey Area

The tricky part is determining a reasonable period before offering a discount.

"What if you offer a discount three weeks after increasing the price, a month, a few months, etc? Would that be misleading or fair?" The law needs to be more transparent on this, which leaves us retailers with a problem of what is reasonable.

My Two Cents

Based on my years of experience, it's best to err on caution. If you've just had a significant price increase, think twice before slapping a discount label if the final price is still above your long-term price point. Your POS System shows a history of when you sold an item and for how much. It will also inform you how long the new price has been in effect. I will also supply you with many of the records you may need.

Let's tweak our scenario a bit more:

1. Original cost: $3
2. Original selling price: $6
3. New cost: $3.50
4. New selling price: $7
5. 20% discount price: $5.60

In this case, your discounted price ($5.60) is below your long-term price ($6), so it will likely be okay.

The Bigger Picture

This case against Coles and Woolworths isn't just about big supermarkets. We must be more mindful of how we present our pricing and promotions to customers.

A Wish for the Future

Would it be great if suppliers informed us about price increases? This would allow us to prepare and communicate proactively with our customers, but we can discuss that in another post.

In the meantime, please ensure that your pricing practices comply with the current legal standards and keep our customer's trust. After all, that's what good retailing is all about.

Throughout my years in computers and retail. However, nothing beats the gut-wrenching moment when you discover your data is lost. I want to share a recent situation that drove home the essential nature of backups for a retail shop.

The Fire That Changed Everything

Recently, I answered a call that left me feeling sick. One of our customers had experienced a catastrophic fire, with their store's computer caught in the destruction. The technician's voice was heavy with dread as he shared the grim reality: No backups. It's incredible how those eight letters can spell disaster.

The Waiting Game

Now, we're playing a nerve-wracking waiting game. Will the computer survive? Sometimes, they do. I've witnessed hard drives burnt with their data intact. Once, we even rebuilt a drive in Perth by a company specialising in salvaging precious information on hard drives. But it's all a point.

The Harsh Reality

If only they had a backup. With a backup, we could have sent them a new computer, and they'd be up and running in no time. Even with the shop closed, they could've sent out customer statements, keeping their business ticking over.

Legal Responsibilities

Many retailers don't realise it's your legal responsibility to have backups. The big tech companies make this crystal clear in their terms of service.

Take Apple, for instance. Their contract states:

"TO THE GREATEST EXTENT PERMISSIBLE BY APPLICABLE LAW, APPLE DOES NOT GUARANTEE OR WARRANT THAT ANY CONTENT YOU MAY STORE OR ACCESS THROUGH THE SERVICE WILL NOT BE SUBJECT TO INADVERTENT DAMAGE, CORRUPTION, LOSS, OR REMOVAL IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT, AND APPLE SHALL NOT BE RESPONSIBLE SHOULD SUCH DAMAGE, CORRUPTION, LOSS, OR REMOVAL OCCUR. It is your responsibility to maintain appropriate alternate backup of your information and data."

Microsoft is even more blunt:

"You are wholly responsible for configuring your Customer Solution to ensure adequate security, protection, and backup of Customer Data."

I've heard that US courts have ruled that not having a backup is considered misuse. It's an obligation.

In Australia, while no single comprehensive law mandating backups, various regulations and industry standards effectively require or strongly recommend maintaining adequate backup systems. The responsibility for implementing and managing backups generally falls on the business or organisation.

Backups and Your Point-of-Sale System

In retail, your Point-of-Sale (POS) system information is the heart of your business. That's why a backup is essential. At the very least, you should back up your data daily, and many of our clients do it even more frequently.

The Cost of Neglect

Let's break down what you stand to lose without a proper backup:

• Sales Records: You could lose your entire financial history, leading to significant tax compliance issues.
• Inventory: You're looking at a reordering nightmare without accurate stock levels.
• Customer Information: Say goodbye to your loyalty programs and valuable contact details.
• Employee Data: Prepare for payroll headaches and scheduling chaos.

Making Backups a Habit

Here's how you can protect your business:

1. Schedule daily backups: There are automated systems that use cloud storage that allow you almost to set and forget.
2. Use multiple backup methods: The cheapest and most popular methods are external hard drives and USB sticks.

Whichever way you need to

1. Test your backups regularly: A backup is useless if you can't restore from it.
2. Train your staff: Make sure everyone knows the importance of data protection.

Remember, it's about protecting against catastrophic events.

The Bottom Line

Invest in a robust backup system today. Trust me, your future self will thank you.

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.

Running your shop is hard work! You deal with:

- Long days behind the counter 
- Money worries from taxes and bills 
- Government officers
- Customers 

Things recently got more burdensome for many owners as the economy is not going well.

With all these stresses, taking care of your mental health is critical.

Personal Experiences

Over the years, I've encountered some heartbreaking situations that highlight the urgency of this issue highlighted for today:

The Locked-In Boss

I once had a boss who locked himself in his office, overwhelmed by stress. The situation became so dire that we called his wife, and when she came, we had to threaten to call the fire brigade to get him out. Sadly, I never saw him again after that incident.

Ivan's Story

One of my clients, Ivan, who was a genuinely capital guy, seemed alright, so I was shocked after he disappeared when rumours in the newsagency community circulated that he had taken his own life. While I can't confirm if it was work-related, it's a stark reminder of the hidden struggles many in our industry face.

A Schoolmate's Tragedy

Recently, a classmate I knew well committed suicide. She had had three failed marriages, no kids and was looking at the end of her fourth marriage.

These experiences have deeply affected me and reinforced my commitment to prioritising mental health.

Startling Statistics

Recent surveys reveal some concerning trends:

• 78% of retail workers experienced stress, anxiety, or depression symptoms in the past month
• 45% of business owners feel they lack resources to manage employee mental health issues

These numbers aren't just statistics – they represent struggling people in our community.

Legal Obligations for Employers

As a business owner, you are responsible for creating a supportive work environment. Here are some legal obligations in Australia regarding mental health in the workplace:

Practical Ideas for Support

Open Communication

Encourage regular check-ins with your team. A simple "How are you doing?" can open up meaningful conversations.

Flexible Scheduling

Where possible, offer flexible hours. It can help employees more effectively balance work and personal life.

Mental Health Resources

If you are worried, contact your industrial body for advice. They can provide information about what you should do and mental health services options.

Lead by Example

Share your own experiences with stress management.

Conclusion

Remember, if someone is struggling, tell them they are not alone, and there's nothing wrong with seeking help or referring them to someone who can help.

Fun fact: On average, in Australia, we have about nine suicides a day.

The short answer is that no one knows. We are on to it; I have discussed it before here and recently had several conversations with people about Australia's new 'right to disconnect' law. It's a hot topic, alright. 

Firstly, I am not a lawyer. This is not legal advice.

Right to disconnect Australia.

The right to disconnect gives employees the legal right to ignore work-related communications outside of their working hours unless it's deemed reasonable to respond. This includes, for example, your communication to them and any customer communication to your employees. It's part of the Fair Work Act amendments and aims to promote better work-life balance. I found a readable explanation by a lawyer here.

When Does It Start?

It's in effect for most businesses now, but organisations with fewer than fifteen (15) employees have until 26 August 2025 to comply. This means most of my clients have a year to digest it.

What Does 'Reasonable' Mean?

Here's the tricky bit - the law doesn't define what's reasonable. It's unclear if it's okay to send and, if so, what you can send; the main focus of the act is that the employee does not need to answer. Now, the courts must interpret this case-by-case until we get clarity.

My first question is, how does an employee know it's reasonable to respond till they read it? So do they have to read it, or is the onus on the employer to make sure it is reasonable before sending it? If so, based on my research and conversations and readings, here are some situations that might be considered reasonable to send:

1. Emergencies (e.g., critical system failures)
2. Pre-agreed on-call arrangements
3. Safety issues
4. Legal or regulatory requirements
5. If you are overseas at a different timezone 

Impact on Retailers Using POS Systems

One concern I've noticed is how this law might affect rostering systems in POS software. Imagine this scenario:

You're working on rosters after hours and must inform an employee not to come in tomorrow. You send an email, but they don't respond. You call, but they don't answer, citing the right to disconnect. The next day, they show up for work unnecessarily.

This situation highlights the need for clear communication protocols and expectations.

I would be careful about working on the rostering system after hours. If this proves to be a problem, we are considering adding a holding facility to stop SMS and emails from being sent to selected people after hours. When we get answers, we can move. If you think we should add any changes, please let me know.

Note that SMS and most popular email services like Gmail can schedule their services; you may want to look into that so your communication goes out during business hours. Even if sending this stuff is okay, you do not want to be the test case to prove it.

After-hours communication policy

You need one. The right to disconnect is here to stay, and despite some talk by other politicians, it isn't very likely that you should go. At best, it might be amended. 

I have seen how retail frauds severely impact retailers. As a retailer with a brick-and-mortar store, you're likely aware of the various business challenges. Void fraud is one of the worst threats to your business, as it attempts to bypass the security in your POS system. 

What is POS Void Fraud?

POS void fraud is a sneaky tactic where unscrupulous workers process a sale, take the customer's money, and then erase the transaction from the system, effectively taking the cash without leaving evidence.

The Mechanics of Void Fraud

Here's how it typically works:

1. The employee processes a legitimate cash sale. 
2. They void the transaction after the customer leaves
3. The cash is pocketed, and no record of the sale remains
4. End-of-day totals appear to balance. 

It's a sneaky tactic that can be hard to spot without the proper controls. 

Customers returning with queries about purchases not in the POS system are the primary method of catching these people. To make this legally stick, you need cameras on the till. This appears to be the only evidence the courts now accept.

Red Flags to Watch For

In my experience, several warning signs might help indicate void fraud is occurring:

• An unusually high number of voided or no-sale transactions
• Voids and no-sales happening at odd times or consistently by the same employee
• Frequent voids for high-value items
• Suddenly, low rates of cash

Suspicious Employee Behaviour

Be on the lookout for staff members who:

• Frequently process transactions without customers present
• Insist on handling specific customers or transactions themselves
• Are overly protective of their register or reluctant to take breaks
• Want to work alone? 

Regular audits and rotating staff assignments can deter potential fraudsters.

POS fraud prevention

1. Implement Strict Void Policies

• Limit void permissions: Only allow trusted senior staff to process voids
• Require approval: Set up your POS system to need manager approval for voids
• Document reasons: Make it mandatory to record a reason for each void

2. Utilise Technology

Modern POS software offers powerful tools to combat fraud:

• Real-time alerts: Get notified instantly of suspicious void patterns
• Integrated camera systems: Link transactions to video footage for easy review
• Detailed reporting: Analyse void trends and identify potential issues

3. What to do

• Do not ignore the seriousness of void fraud
• Proper cash handling procedures
• Spot and report suspicious behaviour
• Review your security camera footage regularly, mainly when a person is alone.
• Conduct frequent, unannounced audits of  Void and No-sale transactions

A Personal Anecdote

I once worked with a small newsagency that discovered they were losing thousands of dollars to void fraud. The employee was ringing up transactions in the customer section, issuing receipts and then voiding the transaction in the cash register. We cut their losses almost immediately, needless to say, the owner.

Retail fraud detection

The first point is to check whether many of these voided transactions are occurring and when and who is doing them.



Easy enough to do: go to main menu > Cash register > Transaction Enquiry (see green arrow)

Conclusion

While POS void fraud poses significant problems, implementing effective strategies and our cutting-edge tools can safeguard your business. Remember, proactive measures trump reactive ones.