Chargebacks911® COO’s New Guest Feature for Fair Capital Blog
In a recent guest feature for Fair Capital, Chargebacks911 COO Monica Eaton explains the difference between true fraud and friendly fraud, and how businesses can protect themselves.
Fair Capital is a full-service debt collection agency, with a mission of helping clients retrieve outstanding receivables, in a professional and ethical manner. Their skilled professionals are trained to handle the collection of consume and commercial debt in a respectful yet efficient manner.
As the name implies, consumers often commit friendly fraud without deliberately trying to hurt merchants. But, as Monica explains, merchants still end up losing revenue, merchandise, shipping costs, and processing fees regardless. “You also have to contend with added chargeback fees and other long-term threats to your business,” she says. “Thus, it’s important that you understand exactly what chargeback abuse is, and what can be done to prevent these types of chargebacks from happening in the first place.”
Friendly fraud has seen a substantial, annual upward trend in recent years. As Monica explains, it’s important that merchants understand how to distinguish friendly fraud from genuine criminal attacks, why these chargebacks happen, and what to do about them.
“Friendly fraud should not be underestimated or written off as a “cost of doing business.” The unfortunate reality is that merchants are losing far more revenue to friendly fraud than they are to criminal fraud, but it doesn’t have to be this way.”
