Stop Losing Money on Walk-Out Tabs

How Smart Bars Protect Revenue, Avoid Chargebacks, and Keep Banks on Their Side 

Walk-Out Tabs Aren’t Just Annoying. They’re Expensive. 

If you run a bar long enough, this has happened to you: 

A customer opens a tab. 
They drink all night. 
They disappear. 

You charge the card for what they ordered. 
A few days later, the bank calls it fraud. 

Now you lose twice. 

And none of it was your fault. 

Here’s How Bars Actually Lose Money on Walk-Out Tabs 

When a customer disputes a walk-out tab, banks don’t care that: 

• Drinks were poured 

• Staff did everything right 

• The customer was clearly there 

They care about proof. 

If the transaction doesn’t meet card network rules, the bank automatically sides with the customer — even when the customer is lying. 

That’s how good bars get burned. 

Why This Hurts More Than You Think 

A single chargeback costs far more than the tab itself. 

Every dispute usually means: 

• The full tab amount gone ($50, $100, sometimes more) 

• A chargeback fee (often $25+) 

• The cost of alcohol, food, and labor you already paid for 

• Staff time pulled into paperwork instead of service 

And here’s the part most owners don’t hear soon enough: 

Too many chargebacks can get your merchant account shut down. 

No card processing = no business. 
Especially in bars. 

The Good News: Most Walk-Out Chargebacks Are Preventable 

Bars that follow a few simple rules win most disputes — or avoid them entirely. 

Here’s what actually works. 

5 Simple Steps to Protect Your Bar 

1. Start Every Tab with a Small Hold

What to do 
When a customer opens a tab, run their card for $20–$40. 

Why it matters 
This creates a verified, bank-approved record that the customer willingly used their card. Chip and tap approvals are extremely hard to dispute later. 

No hold = no protection. 

2. Get New Approval When Tabs Grow

What to do 
If a tab goes beyond the original hold, run another approval before closing it. 

Why it matters 
Charging more than the approved amount breaks card network rules. When that happens, banks don’t investigate — you automatically lose. 

This one step alone saves bars thousands. 

3. Close Walk-Out Tabs Fast

What to do 
Close the tab the same day, or within a few days at most. 

Why it matters 
Approvals expire (usually around 7 days). Once they do, your protection disappears. 

Fast action = stronger proof. 

4. Make Sure Your POS Keeps Real Records

What to do 
Your POS should clearly store: 

• Time the card was used 

• Items ordered 

• When drinks were served 

• Which staff member handled the tab 

Why it matters 
Banks want evidence, not explanations. 
Clean POS records show the transaction was real, completed, and legitimate. 

Without them, it’s your word versus the customer’s — and banks usually don’t pick you. 

5. Write It Down When Someone Walks

What to do 
Train staff to log a quick note immediately when someone leaves without paying: 

• Where they sat 

• Approximate description 

• What they ordered 

• Time they left 

• Who served them 

Why it matters 
Contemporaneous notes are powerful evidence. 
Details written right away carry far more weight than memories weeks later. 

This is one of the most overlooked — and most effective — protections bars have. 

What You Get When You Do This Right 

Bars that follow these steps: 

• Win more chargeback disputes 

• Keep more revenue 

• Avoid repeat fraud attempts 

• Stay in good standing with card networks 

Even better: 
When customers know your bar keeps records and follows the rules, many won’t even try to dispute the charge. 

The Bottom Line 

Margins are tight. 
Alcohol costs money. 
Staff costs money. 

Losing revenue to preventable chargebacks is optional. 

These small changes protect every dollar that comes across your bar. 

Need Help Setting This Up? 

Your CAKE support team can help make sure your system is configured the right way, from tab holds to reporting. 

Reach out to your account manager or contact support anytime at 555-5555-1212 or email mail us at (insert support email) 
We’ve got your back.