Increasing Awareness of Chargeback Fraud
Back when the chargeback was invented, friendly fraud wasn’t even possible. As a form of consumer protection, chargebacks were created to instill a confidence in credit cards as a form of payment.
These days, few people need encouragement when it comes to making a credit card purchase. In fact, the overconfidence created by chargebacks has led to chargeback fraud.
Shedding Light on a Dangerous Situation
By now, merchants are well aware of the fraudulent chargebacks that are being filed against their businesses. However, few know exactly how to manage them. Since friendly fraud stems from authorised transactions made by willing participants, it leaves many merchants wondering where they went wrong.
Friendly fraud continues to run rampant because merchants are usually committing one or more of the following management mistakes:
- The problem is not known.
- The wrong problem is identified because of missing or incorrect information.
- The wrong approach is used. This could include a faulty strategy, insufficient defense or lacking offense.
Our goal is to help educate merchants about the intricacies of friendly fraud, help them prevent these fraudulent chargebacks from happening, and develop a response to effectively fight these illegitimate transaction disputes.
Making Consumers Aware of Their Actions
Many consumers are totally unaware of the repercussions of their actions. They continue to engage in friendly fraud because they don’t realise the consequences for the merchant.
Those customers that do intentionally engage in fraud might not know about the consequences for them. To compensate for the ever-present risk of friendly fraud, merchants are protecting their assets by raising the prices of their products and services.
Customers need enlightenment. They need to know what happens after they call the bank for a chargeback. They need to know the appropriate way to handle returns and refunds. And they need to know they will, in the long run, pay for their actions if chargeback fraud isn’t reduced.
Holding Both Merchants and Consumers Responsible
We hope to bridge the gap between consumers and merchants. Both merchants and consumers need to be more transparent about how they interact when shopping online. By educating both parties about the unseen costs of friendly fraud, we hope to create a more enjoyable ecommerce experience for everyone.