Prevent Chargeback Fraud definitionofsoak, November 8, 2023November 9, 2023 Spread the love Prevent Chargeback Fraud A prevent chargeback fraud reversal that happens when a customer disputes a purchase with their bank or credit card company. It can occur for a variety of reasons, including fraud, dissatisfaction with a product or service, and errors made by businesses. For businesses, chargebacks are costly. They lead to financial losses, damage to brand reputation, higher fees from payment processors and can even result in losing the ability to accept credit card payments altogether. While criminal fraud like account takeovers and typical CNP fraud happen before checkout, friendly fraud often occurs post-checkout, resulting in legitimate disputes that can be hard to combat. To prevent chargeback fraud, merchants must carefully balance their need to block fraudulent transactions with the need to deliver a seamless and smooth shopping experience for their customers. The Merchant’s Shield: How to Prevent and Defend Against Chargeback Fraud In order to avoid chargebacks, business owners need to ensure that they have clear and accommodating return policies. This includes displaying their return policy at registers, posting it on websites and adding the details to paper and digital receipts. In addition, it is important that businesses clearly communicate their return and refund policies to their customers so that they understand what they are purchasing, as well as any exclusions and limitations that may apply. Businesses should also look for atypical shopping patterns that may indicate fraud, such as making multiple purchases in a short period of time, using a different billing address from the shipping address, or having wildly inconsistent addresses. They should also implement a robust fraud-prevention solution, such as Stripe Radar, to help identify suspicious activity and stop fraudulent transactions from taking place before they result in chargebacks. Blog