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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.
Chargebacks are a huge problem that faces merchants today. The incidence of friendly fraud is around 23% of all fraud claims, so disputing chargebacks can be a big benefit to your business. There are several services designed to help merchants manage their chargebacks, including Midigator: a user-friendly, effective software with many features to make disputes easy to keep track of. If you’re concerned about how chargebacks are affecting your business, consider monitoring them using Midigator.
Merchants are expected to keep disputes and fraud at acceptable levels. If your business receives excessive chargebacks, you could land on the chargeback monitoring program.