• Rachel Bryant

Three reasons your business should not take IDs for lending exchanges

Many businesses that rent items to customers are in the habit of taking a customer’s personal ID in exchange for the item they are lending. Whether it’s towels at the pool, umbrellas at the beach, phone chargers at an event, headphones at silent discos, bikes to ride around town - you name it, taking IDs is a decades-old way of lending.

But is it a good method?

Here are three reasons your business should not take IDs for lending exchanges:

1. It’s unsafe

Taking your guests’ ID means that their personal information is now in your hands. In an age where identity theft is on the rise and the need for security is high, the liability you take on isn’t worth it.

You are responsible for their ID and if you misplace it, your customer loses trust in your business. And, if they leave it behind, now you’re stuck trying to work with them to get it returned.

Since the risk of not getting the item back is a big problem, most businesses take IDs in order to deter theft of the items they are lending. In reality, taking IDs does little to prevent theft. Customers may be using an old ID. Worse yet, a fake or stolen ID - doing nothing to prevent them from taking your item permanently.

2. It’s slow and inefficient

At the end of an event or a busy spike when several customers are returning their items at the same time, sifting through all of the IDs taken for each one makes the process of return very slow. Unfortunately, this is not only stressful for your staff, but it also leaves a bad last impression on your customer. Their entire experience up to that point may have been perfect, but waiting in line as your staff digs through hundreds, maybe thousands of IDs, is unbearable.

3. It’s not scalable

As you want to grow your business, the process of taking IDs can hinder the scale at which it can expand. The number of items you can rent out at one time will be limited by your staff’s ability to quickly process returns. For example, if you want to scale your silent disco business from 300 guests a night to 1000 (great increase in overall business, right?), the exponential increase in time to return IDs to customers at the end of the night will cripple your staff and make it impossible to grow at scale.

Great news, there is a better way!

Chexology has been supporting rental-based businesses for over

6 years - taking the stress out of lending through a digital process. The customer’s phone number associates them with the item and sends them a text for confirmation. The technology allows you to authorize and store guest payment information upfront via credit card. This ensures the return of items 99% of the time. And best of all, through Chexology, establishments like yours are returning items with lightning speed and have eliminated the need to look for IDs - significantly improving their customer experience.

See some of our customers in action and learn more about Chexology’s rental solutions here.

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