Fraudulent chargebacks and their preventions

Disputes and frauds happen with every type of business. Customers can cheat businesses after having products delivered to them, or businesses can cheat customers by providing them fake products. 

Whatever the case may be, chargebacks – also known as payment disputes – can save the crime. However, many people mistake chargebacks and file false payment disputes that result in fraudulent chargebacks and businesses have to face loss then.

Friendly fraud chargebacks

Although the name says friendly, this type of fraud is the customer’s manipulation

of the chargeback process by managing to dispute payment after receiving an online purchase made with their credit card. It is not as easy to detect a friendly fraud chargeback for the first time as the perpetrators may appear to merchants like

loyal customers who should and must be served.

Some false claims that customers make for friendly fraud chargebacks are:

• Product not delivered
• Item was returned but no refunds were received
• The order was canceled but they still received it
• The product didn’t match the description

Unrecognizable business name

While making a purchase, you may get deceived by some fraudulent businesses that tend to change their names similar to the ones you ordered from. If the name is not the same as the original business, the customers can suspect fraud and file a dispute.

Chargeback mitigation solutions

Chargeback mitigation is the concept of achieving back the lost money. Following are some preventions of fraudulent chargebacks:

Contact a chargeback mitigation solution company

A chargeback mitigation solution company can provide you with affordable and efficient plans.

AcroCharge is one such company that fights over 80% of chargebacks that are illegitimate to recover the lost funds. You’ll have to pay them a 35% fee only when they’ll recover your lost funds successfully. Compared to the overall plans offered by their competitors, their success fee is super affordable, especially considering there are no additional charges.

Manage your orders

Businesses have to deal with orders almost every day and in quantity. Keeping track of every order is vital as it can be used as proof later in a chargeback dispute.

Similarly, in the case of delivering the products, use a well-known delivery service that takes proof of receipt. Keep in mind not to make false claims in product descriptions. Also, keep a reliable system for checking and handling credits to improve chargeback protection for merchants.

Chargeback defense solutions

There are also tools available that help to prevent any chargebacks in advance. Verifi and Ethoca are third-party providers that offer chargeback alert services. These tools charge a small amount of fee for every usage, but they are worth using especially for merchants who are loaded with false chargebacks.

Conclusion

Many consumers mistake chargebacks as a means of earning back money they spent and use this concept as a business. Such ideas should be condemned and consumers should realize for the sake of the progress of this nation, it is equally important for the consumers and the merchants to respect each other’s work and hardships.