How do you deal with beggars?

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A poor gipsy lady begged me for money, after I refused she asked me to buy her some food for the baby. There was no baby with her but I felt so sad for that child so I said I will buy her some. When we got to the store she put everything she could in the basket but nothing for the baby. I told her Im not buying her anything because she clearly doesnt have a child. She then asked for money again and after I refused she hit me with the basket. I didnt say a word, I just left. I have no idea how to deal with that kind of situation? Do I hit her back and make a scene? What would you do and how do you deal with them in general?