Not all forms of fraud are created equal. While more malicious forms of fraud, such as identity theft, may be well-reported, card not present fraud covers an expansive range of practices.
Merchants concerned about problems related to credit card transactions are likely aware of chargebacks. Many merchants, however, may be confused about the difference between a bank chargeback and a traditional chargeback.
For some people involved in the chargeback process, the only clear aspect is the end result: where the money ends up. For cardholders, this would be a simple refund from their bank.
It seems simple enough. Your customer makes a purchase with their credit card; the money shows up in the bank. Things are going well, until you start noticing chargebacks on your bank statement.
Unlike criminal behaviour where someone breaks into a business and steals merchandise, or hacks into an account, stealing identities and funds, friendly fraud occurs when apparent legitimate customers initiate a transaction and then process a chargeback.
Chargebacks are a blessing for credit card users; they allow cardholders to dispute unrecognised transactions and be protected from possible repercussions related to fraud. For business owners, however, chargebacks can be an inconvenience at best,
There are various ways for consumers to engage in friendly fraud (or chargeback fraud). One of the most common methods is falsely claiming an item or service wasn’t delivered.
Let’s look at the best ways to manage these chargebacks.
Success comes in many different shapes and forms. However, all success stories have one thing in common: a unique and telling journey to the top.
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The business world is full of acronyms, so it can be hard to keep concepts straight. Two acronyms that you hopefully have not experienced firsthand are MATCH and TMF.