Customers may file a chargeback depending on different reasons. When a customer files a chargeback with his bank, he is supposed to provide documentation as the reason for the transaction dispute. Let’s take a look first at the different scenarios in which customer may file a chargeback –
Friendly Fraud – Common Reasons Explained...
A number of valid reasons do exist for chargeback; however, there are a majority of cases in which transaction disputes are owing to friendly fraud. Friendly fraud is the scenario when an apparently satisfied customer completes a transaction and authorizes the sale but later gets in touch with his bank in order to initiate a chargeback.
Let’s take a look at the various scenarios under which chargebacks are claimed normally -
Quite possibly, the claim may appear to be legitimate, the customer may actually have a totally different motive for requesting for chargeback. Typically, it’s the customer’s intention to acquire merchandise for free that drives the motive of such chargeback scams.
Why Chargebacks Continue Being a Complex Issue for Merchants?
There are several reasons that account for free flow of such chargeback scams without much of resistance. Let’s take a look at a few common ones of them –
So, How to Handle such Chargeback Scams?
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