An ultimate guide to Chargeback frauds
Chargeback fraud is silently costing online merchants billions every year. While chargebacks are meant to protect customers, many abuse them by disputing valid transactions. This is known as chargeback fraud — and it’s rising fast. What Is Chargeback Fraud? Chargeback fraud happens when a customer knowingly disputes a legitimate payment to get a refund while keeping the product. Common excuses include claiming the product wasn’t delivered, wasn’t approved, or wasn’t as described. This type of fraud not only leads to direct losses but also damages a merchant’s credibility. To reduce risks, businesses need smarter fraud prevention tools and reliable merchant solutions. Chargeback Fraud vs. Friendly Fraud Though often used interchangeably, chargeback fraud and friendly fraud differ. Chargeback fraud is deliberate. Friendly fraud, on the other hand, happens when a customer mistakenly files a dispute — maybe they didn’t recognize the charge or forgot the purchase. Both are harmful, but inte...