Chargebacks911 Makes Risky Claim That Goes Against the Thoughts of Leading Institutions and Credit Card processors…
When it comes to fraud, friendly fraud is known to be number one for online shopping. The increase in popularity has greatly hindered Merchants who would otherwise prosper in their business ventures. Friendly Fraud is caused by one making an internet purchase with their credit card and then in return filing a chargeback with the card provider once the item purchased is received. Customers tend to use certain situations as means of explanation to why one is filing a chargeback. The customer may claim they never received the item or service, or that they simply didn’t make the purchase.
This affects the company because instead of contacting the Merchant for resolution the customer instead bypasses the Merchant and goes straight to the issuing bank to file a chargeback. Friendly fraud has become the main problem for Merchants and their revenue. Statistics show that 90% of the chargebacks that Merchants receive are a result of Friendly Fraud.
There are basically two types of Friendly Fraud; first party fraud and third party fraud. First party fraud is the same explanation as friendly fraud. Although fraud has been a constant in our economic society for decades, it has become a rise is today’s economic downturn. Some of the main causes are due to the bad financial situations many are experiencing and as well as the growing of technology companies. According to fraudpractice.com, “Third Party Fraud refers to someone using stolen or compromised payment credentials to make a purchase and obtain goods or services while leaving the victim to deal with the charges.” (18 April 2012)
Another importance for the company is to keep thorough customer records. Although companies may not always have the resources to catch each transaction as a friendly fraud-chargeback, it is important that when a chargeback does come into action by a customer that employee’s are prepared with records and documentation regarding the customer. One’s business will then be ready for representation and have the ability to prove your business took all logical steps to accommodate the customer. Merchants should instill confidence in their customers that suggest their business will resolve customer issues. This keeps them coming back and betters your chances of not receiving a chargeback. Showing your business cares and seems genuine will surely help to avoid Chargebacks.
Below Are Examples of Important Customer Records:
- Electronic checkout page for product/Service offer
- Signed Terms and Conditions for Offer
- Signed Proof of Delivery/Delivery Confirmation
- Detailed Description of Product/Service Offer
- Detailed Customer Account history
- Confirmation of customers IP detail, email, shipping and billing information, etc.
Although at this point, there is not a solution to completely eliminate Friendly Fraud –chargeback, this will narrow your chances for receiving them. It is important for every company to save all documentation as this is a way to show proof for whatever may come in future encounters. Also, keeping detailed customer records will give you the ability to dispute the chargebacks your business does receive and enable you to prove that your business took all logical steps to resolve the matter.
