Friendly fraud, also known as friendly fraud chargeback occurs when a consumer makes an Internet purchase with their own credit card and then issues a chargeback through the card provider after receiving the goods or services. When a chargeback occurs, the merchant will always be responsible, regardless of what they did to verify the transaction. The challenge with friendly fraud is that there is no way to verify the authenticity of the transaction, which is in fact legitimate, because the consumer is the one that is not legitimate.
Friendly fraud is a very real problem to businesses and merchants, and LexisNexis reported that merchants are paying $2.33 for every $1 lost in fraudulent transactions.
Read more about Friendly Fraud: History
Famous quotes containing the words friendly and/or fraud:
“For I must tell you friendly in your ear,
Sell when you can, you are not for all markets.”
—William Shakespeare (1564–1616)
“He saw, he wish’d, and to the prize aspir’d.
Resolv’d to win, he meditates the way,
By force to ravish, or by fraud betray;
For when success a lover’s toil attends,
Few ask, if fraud or force attain’d his ends.”
—Alexander Pope (1688–1744)