Not All Fraud Looks Like Fraud

Friendly fraud is when real customers file false chargebacks. It’s rising fast — and it’s beatable.

What Is Friendly Fraud?

Real fraud is a customer getting their credit card stolen, and the thief using this credit card at a store to make fraudulent purchases. This is legitimate and happens every day. What about the other ones? Customers claim fraud or non-delivery on legitimate purchases that they made, most of the time hoping for their money back and a free item or service. Banks often side with them unless you respond fast and thoroughly. Why wouldn't they? Card-not-present transactions make it easy for the customer to make false claims about that purchase.

Why Friendly Fraud Hurts More Than You Think

You lose revenue, product, and time, and get hit with chargeback fees. Enough of these pile up, and you'll also run into issues with your payment processor and be on the brink of losing your merchant account. All for something preventable.

How to Beat Friendly Fraud

Respond! You need to give the bank a legitimate reason as to why this chargeback is false. You and I both know it is false, but the bank needs a valid reason not to believe its customer. Not an easy feat if you are unaware of what to submit. So, what do you submit? At the very least:
- Order confirmation
- Shipping logs
- Screenshots of access or communication
- Clear terms and policies, etc.

Verdivo automates all of this.

Verdivo vs. Friendly Fraud

We respond to every case automatically — fast, correctly, and with evidence that wins. Some reason codes require other evidence compared to others. We know this information. Giving you the best chance at a win every time.

Common Reason Codes for Friendly Fraud

1. Visa 10.4

2. Mastercard 4837

3. Amex A08

By not responding to friendly fraud, you are rewarding friendly fraud.

Fight back the smart way — with Verdivo.