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What You Should Know About Bad Barcodes and Compliance Fines

Unreadable barcodes can cost companies thousands of dollars a year.

What you don’t know about bad barcodes and compliance fines can end up hurting you in more ways than you think.

Scanning your barcode might seem simple enough, given the plethora of technology available for quick barcode reading. However, errors can lead to costly fines and have several other negative ramifications. What appears to be a small error can result in higher costs, fines and chargebacks.

Here is how bad barcodes can disrupt operations and result in fines, among other setbacks.

Bad Barcode Labels

Bad barcode supplies can mean that your barcode labels might deteriorate to the point that they become unscannable. You will have to work manually, which defeats the very purpose of barcodes and scanning technology. Besides added work and annoyance, there is a higher risk of human errors that might lead to problems like returned shipments, errors in handling orders and ultimately, poor customer experience.


Bad labels can increase the chances of chargebacks. While chargebacks are unavoidable, too many of them might hamper your operations and stifle your cash flow, especially if your business is expanding and in greater need of higher cash flow.

Your retailer will give you a report in case of a bad barcode chargeback explaining the cause. You can use a barcode verifier to verify if the report is correct and that your barcodes fall below accepted industry standards. If that is not the case, you can use the results from your barcode verifier to contest the retailer claim.

Heavy Fines

If you use bad quality barcode supplies, then you might end up contravening your retailer policies and incur heavy fines as a result. You need to ensure that you are complying with standards, including requirements that the retailer has stated. These fines can eat into your profits and make your operations less financially feasible.

Risks Outside Your Warehouse

You might heave a sigh of relief when you finally get the consignment out of your warehouse thinking that this is where your responsibility ends. But if there is damage to the labels outside your warehouse, you might still be liable to pay fines for it.

Rough handling during shipment can make labels unreadable and increase the risk of chargebacks. The solution for this is to use good barcode supplies.

Right Materials

You must use the right materials for your barcode labels to avoid hefty fines. If your consignment will be exposed to high heat, cold, moisture or other tough conditions, you should choose your barcode label material accordingly.

High-Quality Supplies

The cost of replacing printheads is high; hence, it is important to maintain them properly and use good quality supplies that will extend their lifecycle. Unexpected printhead failures can also disrupt operations.

Poor scanning and printing technology, as well as bad barcode materials, can result in much higher expenses. It is better to invest in the right technology to avert these needless costs and setbacks.

With a little attention to the right technology and materials for your barcodes, you will save yourself a lot of compliance fines, unnecessary costs and headaches in the long run.

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MIDCOM offers all barcode label printing and barcode scanning equipment. Talk to a Specialist now about your barcoding needs at (800) 643-2664.

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