Parking validation solves a common business challenge: how to offer free customer parking while preventing non-customers from using the lot as free all-day parking. The solution charges everyone by default but provides validation codes to legitimate customers, making their parking free while capturing revenue from everyone else.
This works particularly well in high-demand parking areas where non-customers regularly use business lots without patronizing the business.
All parking starts as paid, but customers receive codes that waive charges.
Drivers scan a QR code or their license plate is captured when entering. Customers receive validation codes at checkout, on receipts, or through point-of-sale systems. Customers enter codes via text, web portal, or app. The system applies free parking. Non-validated users pay standard rates.
The technology handles everything automatically through existing checkout processes.
License Plate Recognition (LPR) captures plates automatically. Customers validate by entering their plate number and validation code through web portal or text message.
Scan-to-Pay validation has customers scan QR codes when parking. At checkout, they enter validation codes to waive charges.
Point-of-sale integration automatically validates parking based on transaction data without requiring customer action.
Time-limited validation provides free parking for specific duration of 2-3 hours rather than unlimited time.
Validation programs work best when businesses experience high non-customer parking usage, operate in urban or commercial locations, have adequate parking capacity to serve customers first, and typical customer visits of 30 minutes to 2 hours are shorter than all-day parker needs.
Compared to time-based free parking: Validation provides unlimited free time to customers while charging non-customers immediately. Time-based systems charge everyone after the free window.
Compared to after-hours parking: Validation operates during business hours addressing non-customer use. After-hours monetizes closed periods.
Compared to allow-listing: Validation works for one-time customers. Allow-listing requires knowing plates in advance.
Customer communication: Clear signage explaining the validation process prevents confusion.
Validation code distribution: Decide whether codes appear on receipts, are provided verbally, or integrate through POS systems.
Validation window timing: Most businesses offer 2-3 hours free parking, accommodating typical visits.
Staff training: Employees need to understand the process and assist customers with questions.
Exception handling: Establish procedures for customers who forget to validate or experience technical issues.
Rates should discourage non-customer use without creating customer relations issues if someone forgets to validate. Typical approaches include hourly rates of $2 to $5 per hour or daily maximums of $15 to $25 that align with nearby parking garage rates.
Customer confusion: Clear signage and staff training minimize forgotten validations.
Technical problems: Systems should allow quick manual overrides when validation codes fail.
Competitive concerns: Businesses must weigh revenue from non-customers against any customer friction.
Businesses exploring validation programs should start by documenting current parking lot usage. Count vehicles that park but do not patronize the business. This data reveals whether non-customer parking is significant enough to justify validation implementation.
For more on structuring parking programs that protect customer relationships, see our guide to balancing revenue with relationships. Learn about announcing paid parking changes to maintain customer goodwill during transitions.