What is chargeback fraud? Also known as friendly fraud, this type of fraud occurs when a customer disputes a charge with their credit card company. The goal of the dispute is usually to get a refund for the purchase, even though the customer actually received the product or service they ordered.
This can be a huge problem for businesses, as it can lead to lost revenue and increased processing fees. In its simplest terms, it is when a customer disputes a credit card purchase with their bank.
And can be done for a number of reasons- the most common being that they did not authorize the purchase or they were overcharged. Unfortunately, this type of fraud is on the rise, and it can be very costly for businesses.
This type of fraud is also known as friendly fraud because the person doing it often does not see themselves as a criminal. Instead, they may think that they are just trying to get their money back from a bad purchase.
However, chargeback fraud costs businesses billions of dollars every year, so it is important to protect your business from this type of fraud. This can be a huge problem for businesses, as it can lead to lost revenue and increased processing fees.
Also, when someone makes a purchase and then requests their money back from the credit card company. This is often done by people who know they won’t be able to get the product or service they purchased or by those who are trying to take advantage of the system.
Unfortunately, this type of fraud is on the rise, and it can be very damaging to businesses. In this blog post, we will discuss what chargeback fraud is, how to protect your business from it, and what you can do if you’re a victim of friendly fraud.
How to protect your business?
There are many ways to protect your business from friendly fraud. One way is to use a chargeback management tool that can help you keep track of all your transactions and identify any red flags. You can also work with your payment processor to create a policy for dealing with chargebacks, which will help ensure that you’re following the correct procedures if a chargeback occurs. Additionally, you can educate your customers about the risks of friendly fraud and how to avoid it. Finally, you can help protect your business from this growing problem by following these tips.
Chargebacks occur when a customer disputes a charge on their credit card statement. This can be done for a number of reasons, such as if they believe they were overcharged, if the product or service was not delivered as promised, or if charged for something they didn’t order. Chargebacks can be a major problem for businesses, as they can result in lost revenue and increased processing costs.
The Bottom Line
Friendly fraud is a growing problem among credit card users. This is when a customer disputes a charge on their credit card statement but does not actually have a legitimate reason for doing so. Instead, they’re taking advantage of the system in order to get free products or services or to receive a refund for something they never purchased.