Strip clubs are a strange business. They’re legal and licensed businesses, but as any of you who have spent time in strip clubs already know, they operate in a sort of gray area.
Even the fanciest-looking clubs are not immune to some shady tactics. Sometimes, it’s the highest-end clubs that are the most shady.
Then you have the girls that work there. Sometimes they’re just passing through town and don’t mind hustling some guys or even picking a pocket here and there for some extra cash.
Vegas is no different, and in some ways, it can be worse. Vegas strippers and club owners know a majority of their customers are only in town for a few days. If a customer gets ripped off, they don’t have time to follow up.
We have shown you some other tips on how to avoid strip club scams, but there is something new popping up around the country that you need to be aware of.
Making this mistake can cost you over $70K with no way to get your money back.
Signing a Credit Card Authorization at a Strip Club
Nightclubs, restaurants, and sometimes strip clubs have used these forms in the past. They are called credit card authorization forms.
Usually, these are used by legitimate businesses for larger credit card purchases, recurring purchases, or open-ended purchases.
For example, if you hire a caterer for a wedding, they may have you sign a credit card authorization form. This is so you can’t dispute the final bill when it comes. The form acts as a type of contract and since you sign it, you have to honor it.
Once you sign that form, you are essentially on the hook for whatever the business decides to charge you as long as it’s included in the form. If you do business with a legitimate company, it’s not a problem.
However, a shady company like a strip club can take advantage of this and charge you whatever they want.
We’ve been getting more reports that some clubs around the country are trying to get more and more customers to sign these forms when they book tables, packages, or even just a block of dances.
What’s crazy is that customers are actually signing these and it should be no surprise that they wake up to a maxed-out credit card in the morning, along with a hangover.
Strip Club Scams Over $70K From Customer Using Authorization Form
In Arizona, there is an ongoing investigation and lawsuit into several strip clubs that allegedly used this scam to bilk customers out of over $1 million.
Some of the plaintiffs in the case claim they were drugged, but they all signed credit card authorization forms at some point during their visit to the club.
It’s very possible the customers didn’t realize what a credit authorization form is and may have thought it was some sort of waiver or an invoice.
But not knowing cost them big money, with one customer waking up to a $70K charge on his Amex card. Because of the credit card authorization form he signed, Amex refused to issue a chargeback or refund his money.
Here’s a local news report on the incidents:
Is This Happening at Vegas Strip Clubs?
We’ve heard reports that some Vegas clubs have asked customers to sign these forms when booking packages. However, as of now, we haven’t heard of anyone being ripped off for tens of thousands of dollars through a form like this.
However, that doesn’t mean it hasn’t happened. Many customers may be too embarrassed to come forward and simply accept the money lost and take no action. Other customers may be wealthy enough to absorb the loss and move on.
So the answer is yes, some Vegas clubs have these credit card authorization forms and some are asking customers to sign them when booking certain packages or events.
Avoid This Vegas Strip Club Scam
We can’t stress enough how you should NEVER sign any credit card authorization form while at a strip club.
In fact, we often suggest you never bring credit cards to a strip club and just bring cash. If you must bring a credit card, don’t bring a business card or Amex card with a high limit.
From what we’ve heard, the clubs pulling this scam target guys or groups of guys using high-limit cards. So if you pull out your fancy Amex business card at a strip club, you’re asking for trouble.
To be clear, a regular credit card receipt is different from the types of forms used in these scams. For example, if you pay for a round of drinks and get a little receipt to sign and add a tip. That’s just a receipt.
Credit card authorization forms have a lot of text and are usually a full sheet of paper. The club may pretend they are an invoice or just a way to “protect you” from overcharges. They are allowed to basically say anything to get you to sign the form since none of it is recorded and it’s just their word against yours.
The bottom line: Never sign any document at a Vegas strip club or any other strip club. If you’re booking a package, do it when you’re sober so you can read everything carefully. If you’re already drunk, use cash only.
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