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.
When a customer disputes a walk-out tab, banks don’t care that:
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.
A single chargeback costs far more than the tab itself.
Every dispute usually means:
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.
Bars that follow a few simple rules win most disputes — or avoid them entirely.
Here’s what actually works.
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.
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.
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.
What to do
Your POS should clearly store:
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.
What to do
Train staff to log a quick note immediately when someone leaves without paying:
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.
Bars that follow these steps:
Even better:
When customers know your bar keeps records and follows the rules, many won’t even try to dispute the charge.
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.
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.