EDITORS’ NOTE Derrick Myers, CPA, CFP, PFCI, loves a good financial management challenge, however big or small. Send your questions to
fmeditor@safnow.org.
Reduce Fraud Exposure Y
The realities of retail floristry create unique fraud risks — and make prevention essential to protecting profits and operations.
our business is a labor of love, but the same high-volume, third-party gifting nature that makes it rewarding also
makes it a target for sophisticated fraud. As florists continue to rely heavily on online orders, digital payments and remote customer interactions, fraud risk has increased. Scammers are using everything from artificial intelligence to old-school “overpayment” tactics to siphon profits from your shop and put stress on your finances and operations. Protecting your shop requires taking
proactive measures, as well as an under- standing of how the structure of the floral business — perishable products, third-party gifting, and time-sensitive delivery — creates unique exposure that scammers know how to exploit.
Types of Fraud
1. Credit Card Chargeback Chargebacks are arguably the most common financial drain on florists. Because flowers are highly perishable, they are difficult to “return” or verify for quality once they leave your shop, making them a prime candidate for two types of disputes:
“Friendly” Fraud This occurs when a legitimate customer receives an arrangement but later dis- putes the charge with their bank. They may claim the flowers were wilting upon arrival or never delivered at all. Since the evidence, the flowers themselves, has usually been discarded by the time the dispute arises, the burden of proof falls
30 FLORAL MANAGEMENT | Mar/Apr 2026 |
WWW.SAFNOW.ORG
entirely on you. Even a single charge- back can quietly erode profits through lost revenue, fees and staff time spent responding.
Stolen Card Fraud A thief uses a stolen credit card to place an order, often for high-value items like funeral sprays or large event center- pieces. By the time the real cardholder notices the charge and initiates a dis- pute, the product has been delivered and is gone. You lose the product, the delivery costs, and are typically hit with a chargeback fee of $15 to $50. Repeated chargebacks can also put your merchant account at risk. Prevention Strategy: Always use
Address Verification Service (AVS) and the credit card’s CVV (three-digit
SHUTTERSTOCK/FAHMI_RUDDIN_HIDAYAT
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