Chargebacks911® Exec Discusses Friendly Fraud in NRF’s Official Publication
Monica Eaton, one of the world’s leading experts on chargebacks, recently appeared in Stores Magazine. In the feature, Monica offers valuable insight into friendly fraud, and what sets it apart from other threats.
Stores Magazine is the official publication of the National Retail Federation (NRF), one of the world’s largest industry groups. The magazine reaches tens of thousands of retailers each month with information about new innovations, best practices, and other vital information.
Given the current scope of the chargeback problem facing online retailers, it’s no surprise the publication called on Monica and her fellow chargeback experts. Retailers lose billions every year due to friendly fraud chargebacks; it now constitutes more than 30% of all card fraud. How is friendly fraud such a problem? The issue lies in the fact that it’s a subversion of a useful consumer protection mechanism.
“Chargebacks were designed to protect users from unfair merchant practices and identity theft, but they are increasingly being used by consumers,” Monica says. “Many merchants now need protection from a system originally intended to protect the cardholder.” In some cases, the customer may not even realize they’re committing fraud. But either way, the merchant still pays the price.
The post also outlines options for protection against chargebacks as well. The key: compelling evidence to dispute the customer’s claim.
