Friendly Fraud: Why this Practice is far from Friendly
JoTo PR client, ChargeBacks911, was featured in a bylined article in ValueWalk titled, What is Friendly Fraud and How Can Merchants Fight It?
While the e-commerce market is strong, the industry as a whole faces plenty of challenges. A major challenge is friendly fraud, one of the fastest-growing threats in the online market. Friendly fraud occurs when a customer requests a chargeback without proper justification, such as unrealistic customer expectations, lack of understanding of the difference between a return and a chargeback, and buyer’s remorse.
Monica Eaton-Cardone, co-founder and COO of Chargebacks911, said that even though chargebacks are meant to be consumer protection mechanism, they have become more a merchant hazard. A study conducted by Chargebacks911 suggests that 60-80% of chargebacks result from friendly fraud. What’s more, these transactions cost businesses $31 billion in direct losses through revenue, merchandise, and fees in 2017. The trends also show an anticipated economic impact of $25 billion a year by 2020.
Card schemes, banks and merchants must come together and establish consistent and fair procedures that can be standardized across all card brands, such as a “dispute credit score” or a chargeback monitoring program.
Chargebacks911 empowers businesses to combat constantly evolving fraud tactics and mounting customer disputes that directly threaten profitability. Operating as The Chargeback Company in Europe, Chargebacks911 has pioneered effective, industry-leading solutions designed to reduce chargeback fraud, alleviate processing costs, mitigate risk and recover revenues.
The company’s unparalleled expertise and proprietary technology have earned three consecutive CNP Customer Choice Awards for Best Chargeback Management Solution, three successive AI Lions’ Den Awards for Best Airline Industry Solution, and Gold and Silver Stevie Awards from the American Business Awards (ABA). With innovative and highly scalable services ranging from Intelligence Source Detection™ (ISD) to Tactical Representment, Chargebacks911 uncovers the true source of chargebacks, battles unjustified disputes, rescues lost revenue, safeguards reputations, and defends against relentless, ever-changing cyberthreats.
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