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Right now, we don't cover friendly fraud. The reason is that it's largely out of our control. We can't control how well merchants communicate with clients, how
by rbres 9y ago
Right now, we don't cover friendly fraud. The reason is that it's largely out of our control. We can't control how well merchants communicate with clients, how fast/reliably they ship, etc. So if we covered it, it lowers the cost of treating customers poorly. There will always be a bad actor here or there, but that's typically less than 1% of chargebacks (at least from our data).
- ikeboy 9y agoWow, you're saying 99%+ of chargebacks are claiming not authorized? Would not have expected that.
- rbres 9y agoNot exactly. Friendly fraud is when a customer is a clear bad actor and, even though they receive the goods/services, they claim they didn't. Merchant-fault is typically behind many of the non-friendly-fraud and non-stolen-card-fraud chargebacks. This includes late shipments, not adhering to return policies, damaged goods, etc.