Friendly Fraud Prevention With Bolt

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Friendly fraud prevention  involves preventing customers from abusing the chargeback process in order to receive a refund for goods or services that they never intended to purchase. It is also called “chargeback fraud” or “friendly fraud,” and it accounts for a significant percentage of dispute claims filed by credit card holders. This is a growing problem for merchants that can lead to large financial losses and damage the reputation of your business.

Some customers may have a legitimate reason for filing a chargeback, such as a lost or damaged package, but it is often done with dishonest intent in an attempt to avoid paying for products they did not intend to buy. This type of abuse is known as friendly fraud, and it can be difficult for merchants to spot. Friendly fraud is often based on one person’s word against another, and this makes it hard for transaction monitoring systems to identify patterns.

Stopping Chargeback Fraud in Its Tracks: Strategies for a Secure Payment Environment

Merchants can reduce the number of friendly fraud cases by documenting shipping, making phone calls to resolve disputes and providing excellent customer service. This will make customers more likely to alert the merchant if they have any issues with their purchases instead of filing a chargeback claim.

Other methods to prevent friendly fraud include sending reminder emails to subscribers before their subscriptions renew, requiring proof of delivery and using explicit naming on the credit card statement so that consumers don’t mistakenly think they made a purchase they did not recognize. By using this approach along with Bolt’s automated reimbursements and indemnification protection, businesses can have confidence that their payments are secure against malicious or unintentional chargebacks.

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