If you run a small business, you know how hard it is to keep up with your customers’ needs, especially when dealing with chargebacks. Despite your best efforts, customers can dispute a legitimately authorized transaction in less time than it took to complete the original purchase. This can create additional work for you and jeopardize the health and reputation of your business – all while the customer is committing “friendly fraud” along the way.
What Is Friendly Fraud, and How Does It Happen?
Friendly fraud, also known as first-party misuse, occurs when customers abuse the chargeback system by