Friendly Fraud Prevention – Every business owner’s nightmare is friendly fraud. If you are also a merchant then you will understand that a friendly fraud is worse of all kind. Because of sometimes it’s neither friendly nor fraud. It gets really difficult for both merchant and banks to differentiate between a friendly fraud and an actual fraud. If you are one of those merchants and looking for tips for Friendly Fraud Prevention. Then you can get assistance from an expert at the Chargeback Expertz.
In this blog, we will discuss the Friendly Fraud in detail. This will help you clarify the doubts about the friendly frauds and discuss methods to prevent friendly fraud.
Know More about Friendly Fraud
After making the payment of an item when a customer directly applies for chargeback without asking the business owner for a refund or replacement of the product, it is termed as a friendly fraud. In such a case, the customer does not always know about other methods to get a refund and goes to the bank directly. A friendly fraud affects the business as badly as any other chargeback.
Sometimes, things are not as simple as written above. The bank treats the friendly fraud exactly like any other chargeback request. And ultimately the merchant is the one who has to bear the loss.
5 Doubts – Friendly Fraud Isn’t Friendly
Many customers use the laws of the chargeback for their own benefit and the merchant bears the loss. The laws against chargeback are very strict and a merchant is allowed only a certain number of chargebacks a month. Otherwise, they will be subjected to a heavy fine.
The customers are sometimes involved in the malicious activity and abuse the chargeback in the name of friendly fraud. Here is how a customer can cause a friendly fraud.
- Some people are involved in digital shoplifting where they purchase a certain product and as soon as the item arrives, they ask for a chargeback.
- When a purchaser gets a different or faulty product, he/she directly reports for a chargeback.
- When another family member purchases a product using a card. The cardholder does not recognize the product and files the chargeback request
- In 40% of the cases, the customers have accepted that they did not know about any other method to get the refund.
- So, lack of knowledge also plays an important role when it comes to the chargeback.
If you need help with the business to manage the Chargeback Representment then feel free to contact the Chargeback Expertz at our toll-free number.
Steps for Friendly Fraud Prevention
It is really hard to detect a friendly fraud for a merchant. But once you understand the friendly fraud, you will be able to reduce the number of chargeback after a while.
- Tell your customer about your replacement and refund policies clearly.
- Talk to your employees and ask them to build a healthy relationship with customers.
- Do not over praise your product and be genuine to your customers.
- You can also add payment agreement in the checkout process and ask the customer to sign the agreement.
- Create a list of customers that seem suspicious and cause chargeback abuse.
- If somebody is ordering more than usual or a large order then keep a keen eye on that order.
- Track your order to make sure the package is received by the purchaser.
As we said, friendly fraud prevention is not easy. You need to add some extra preventive measures to your business in order to make a profit.
Still Confused? – Contact Chargeback Expertz
Hopefully, this blog helped you to understand that the friendly fraud isn’t friendly and sometimes it not even a fraud. These could be an honest mistake of a customer or a shoplifter trying to steal. The merchant can never be sure about the intentions of the customer. But with little prevention and help of an expert, you can handle chargeback abuse.
In case you are still confused and need rigid steps to tackle the friendly frauds then you can take help of a chargeback specialist. You can contact the Chargeback Expertz at the toll-free number or chat via Skype. We can help you tackle chargeback and assist with Chargeback Representment.