Have you ever heard about cases, connected with chargeback? Sounds to be not attractive for any kind of business.
According to merchants, it often happens, that customers claim about their order and the scales are tipped in their favor as well. Such obstacles could significantly hurt company’s interests. This way, chargebacks are strongly unwilling.. However, claims with cards services keep on.
Such occurrence can be hardly investigated. All, that remains is to develop your own anti-fraud complex strategy.
What is exactly the nature of friendly fraud?
Generally, fraud itself is a major inciter for client to require chargeback. In its turn, this action takes place, when looking for more safe transaction customers apply banks instead of merchants for a refund. The reason of this act could vary from not delivered goods to unauthorized transaction.
And here the friendly fraud may occur, when a consumer conceals a fraudulent action under chargeback process.
So, merchants, have you already made wonder of your safety?
In today’s world prevention of such cheating becomes essential part of running business online.
So what should be done?
In order to avoid losses merchants should estimate precisely the opportunity of being attacked and to develop their own strategy to fight against fraud.
Firstly, they should take into account the best practices of preventing fraudulent activity. Than it would be great to follow all security measures, such as:
– working with 3D Secure;
– employ card security codes;
– involve Address Verification System;
– use IP geolocation;
– and so on.
Not the last thing is to implement Fraud Monitoring System in order to determine threats and eliminate them easier.
Besides all above-said, it will be nice idea to enhance clients service and to monitor every transaction flow. Moreover, the useful step will be to manage all IP addresses of orders, save all communication between clients and to verify customers billing addresses, before sending products, in case of being e-commerce.
One more thing for e-commerce merchants, that is of great importance, is to proof merchandise shipping and have a confirmation of delivering.
Considering all experiences of facing friendly-fraud, being alert is essential. Fighting chargeback fraud helps to maintain the harmony of cooperation among all participants of the deal and to preserve transaction privacy.
It’s high time to make sure you are strong enough to face any fraud and to bear away!