Monica Comments on Chargeback Abuse for Modern Restaurant Management

Chargebacks911® COO on How to Stop Post-Covid Chargeback Abuse in Food & Beverage

In her latest guest feature, Chargebacks911 COO Monica Eaton weighs in on the impact of chargeback abuse—commonly known as friendly fraud—for industry publication Modern Restaurant Management.

Modern Restaurant Management (MRM) magazine is a go-to resource for on-the-go restaurant-industry professionals. Focused on all aspects of restaurant management news —the business of eating— the online magazine posts news items on a daily basis. MRM incorporates profiles, trends and expert advice to offer valuable content to this niche.

Following the outbreak of Covid-19, many restaurants pivoted to remote channels to stay afloat. Online ordering, delivery apps, and click-and-collect all presented new channels through which to connect with customers. However, this also exposed merchants to greater chargeback risk.

“Data published by fraud management firm Kount found that one-third of all merchants have had a chargeback rate in excess of 1 percent of transactions at some point since March 2020,” Monica notes. She also points to the fact that many of these chargebacks are cases of friendly fraud. As of September, she says, friendly fraud had “surpassed phishing, pharming, and identity theft to become one the most common attack sources, globally.”

Monica continues that the best response to this problem is segmenting chargebacks by source. Friendly fraud demands its own approach, as do chargeback resulting from criminal fraud and merchant error.

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