Have you ever made a purchase and then later regretted it? Maybe you realized that you didn’t need the item after all, or maybe you just changed your mind. If this has happened to you, you’re not alone.
In fact, this is exactly what online merchants fear the most: chargebacks. A chargeback happens when a customer disputes a charge on their credit card statement.
This can be for a variety of reasons, but one of the most common is friendly fraud– also known as false or unauthorized billing. So what is friendly fraud? And why is it called that? Let’s take a closer look!
This is a term used to describe a type of chargeback fraud where the cardholder disputes a charge that they made on their own credit card. The reasoning behind this type of fraud is that the cardholder believes that they did not authorize the purchase or they were overcharged.
There are many reasons why someone might commit friendly fraud, but the end result is always the same-the business loses money. In this blog post, we will discuss what friendly fraud is and why it is called that. We will also provide tips for businesses on how to protect themselves from this type of fraud.
What is chargeback fraud?
Also known as friendly fraud, this type of fraud happens when a customer disputes a charge on their credit card statement. They may do this for a number of reasons- to get free merchandise, because they didn’t authorize the purchase, or because they were misled about the product or service.
This type of fraud occurs when a customer disputes a charge on their credit card statement with the intention of keeping the merchandise without having to pay for it and can be difficult to combat.
Why is it called the Friendly Fraud?
Chargeback fraud is when a consumer disputes a charge on their credit card through their bank. The dispute can be for many reasons, but the most common type of chargeback fraud is called friendly fraud.
Friendly fraud is when the consumer knows they made the purchase, but they dispute it anyway in order to get their money back. This type of fraud is often done by children or spouses who make a purchase without the other person knowing.
Another common type of friendly fraud is when the consumer doesn’t recognize the charge on their statement. They might think it’s a scam, so they dispute it to get their money back. This can also happen if the merchant doesn’t deliver what was promised in the sale.
Whatever the reason for disputing a charge, friendly fraud costs businesses billions of dollars every year. That’s why it’s so important to protect your business from this type of fraud.
There are several steps you can take to help protect your business from chargeback fraud:
-Make sure you have clear and concise return policies posted on your website.
-Make sure you are delivering what was promised in the sale.
-Use a fraud prevention service to help protect your business from fraudulent charges.
-Train your staff to recognize friendly fraud and how to prevent it.
The Final Word
When you make a purchase, you expect to receive the product or service that you ordered. Unfortunately, this isn’t always the case. Sometimes, customers will make a purchase and then request a chargeback from their bank after receiving the product or service, which is a chargeback fraud.