Research and Markets, a market research report seller, released a new report entitled ‘Merchant Chargebacks Are on the Rise Due to Friendly Fraud.’ The report is available to download via their website.

Friendly fraud is a known problem for merchants across verticals. Preventing friendly fraud is difficult. Traditional chargeback fraud leaves traces and patters that the best eCommerce fraud prevention solutions can detect. In contrast, friendly fraud does not. It is a catch all term used when chargebacks occur on an order intentionally placed by the legitimate credit card holder. Because the transaction takes place in the exact same way as a legitimate order, predicting or anticipating it as a chargeback is essentially impossible.

“Merchants find themselves wrestling with the chargeback process, which is triggered when consumers dispute a purchase transaction, mostly on e-commerce sales,” said a blurb posted by Research and Markets about the report. “Increasingly, friendly fraud has also become a direct cause of merchant chargebacks. This report delves into chargeback reasons and implications as well as vendors of chargeback services that have emerged to provide solutions for merchants.”

The report provides guidance to merchants looking to better understand the specific challenges posed by friendly fraud, as well as the known best practices for mitigating its effects. In addition, the report gives merchants timely information about some of the fraud prevention solutions that exist for this specific problem.

One of the topics included in the report is the way consumers aware of the customer-friendly posture of banks use that preference to defraud merchants. This is an increasingly severe problem. In an interview with Merchant Fraud Journal, Monica Eaton-Cardone, COO and co-founder of Chargebacks911 discussed the reasons why. She also emphasized the importance of disputing friendly fraud chargebacks properly.

“Merchants are incurring a major pain point dealing with consumer-disputed sales transactions that can lead to chargebacks. This can mean merchants lose not only the sales revenue but also the merchandise and related overhead costs as well,” the blurb said.

In addition to the practical advice, the report also includes estimates of the prevalence of friendly fraud chargebacks by industry.

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