For business owners, receiving payments is the most important part of operations. However, it’s inevitable that, at some point, a payment dispute may come up. Whether it’s a chargeback or a refund request, these situations can be stressful and time-consuming. It’s crucial for business owners to understand how to handle payment disputes effectively to protect their business and reputation. Being aware of best practices on how to handle payment disputes is a good start in minimizing the risk of disputes occurring in the first place.
Knowledge Category: Chargebacks
An unfortunate reality of doing business today is chargebacks. There are two types of fraud – true and friendly fraud. With the former, a bad actor has obtained sensitive card data of which they are not the owner and uses that information to make a purchase (aka identity theft). In the case of friendly fraud, a less malicious form of chargeback, a request for chargeback happens largely due to customer confusion. The customer may have made a purchase and then forgot, may not recognize a charge made by another family member, or perhaps simply misunderstood a return policy.
If you’re an online merchant, you probably know that fraud in card-not-present (CNP) transactions is on the rise, increasing from 2.8 billion in 2014 to 4 billion in 2017. That means that more and more consumers might be the victims of online fraud — or they are fraudsters themselves.