During the Covid lockdown, a lot of retail spending moved online. But as things slowly return to normal, buyers are making their way back into physical stores. Unfortunately, according to Monica Eaton in her new feature for the StarMicronics blog, chargebacks are coming with them.
Star Micronics Co., Ltd. is a Japanese multinational electronic components and printer manufacturing company headquartered in Shizuoka, Japan. It was founded in 1947 as a precision processor of miniature components, later expanding into automatic lathes, printers, micro audio components, and other fields.
Merchants have the right to contest invalid chargebacks, but proving that a claim is bogus requires evidence. While chargebacks mostly happen online, they can occur in physical stores, too. “The reality is that friendly fraud has become a growing menace to merchants as a whole, according to findings from the recently published 2022 Chargeback Field Report,” Monica writes. “Of the respondents, nearly two-thirds said that chargeback abuse—friendly fraud—had increased over the last three years.”
Brick-and-mortar merchants may have an advantage when it comes to collecting compelling transaction proof, though, in the form of printed receipts.
“Electronic transaction receipts are useful, but technology can be exploited, and systems can be hacked,” Monica says. “Having a hard record of transactions can simplify representment and increase the odds of success. At the same time, a printed receipt may encourage would-be friendly fraudsters to take their scams elsewhere. For brick-and-mortar merchants, it’s a win-win.”
