Monica Eaton, CEO of Chargebacks911, was recently featured in Women’s Wear Daily discussing the findings of the latest edition of the Chargeback Field Report. The article explores how friendly fraud continues to grow across the retail sector, placing increasing financial pressure on merchants as legitimate purchases are disputed through the banking system.
The feature examines the changing nature of payment disputes and the mounting challenges facing retailers. Drawing on data from Chargebacks911's research, the article explains that friendly fraud has evolved beyond isolated incidents into a widespread business risk fueled by changing consumer expectations, streamlined dispute processes, and ongoing economic pressures. As a result, merchants are facing higher operational costs and more complex dispute management requirements.
“Friendly fraud is no longer a niche issue; it’s become a mainstream revenue challenge for merchants,” Eaton said. “The easier it becomes for consumers to dispute a transaction, the more important it is for businesses to invest in prevention, documentation, and post-purchase engagement.”
The article notes that Chargebacks911’s research identifies several factors contributing to the increase in disputes, including digital-first shopping habits, greater reliance on mobile banking apps, and growing consumer confidence in the chargeback process. It also emphasizes that effective chargeback prevention extends well beyond fraud screening, requiring clear communication, transparent policies, and a seamless customer experience throughout the transaction lifecycle.
Eaton also emphasized that addressing the problem will require cooperation across the payments ecosystem. “Reducing friendly fraud isn’t just about stopping invalid disputes after they happen,” she explained. “It’s about creating an environment where merchants, issuers, and consumers all have greater transparency, stronger trust, and better tools to resolve issues before they become chargebacks.”
