Friendly fraud

Friendly fraud, also known as chargeback fraud occurs when a consumer makes an online shopping purchase with their own credit card, and then requests a chargeback from the issuing bank after receiving the purchased goods or services. Once approved, the chargeback cancels the financial transaction, and the consumer receives a refund of the money they spent.[1] Dependent on the payment method used, the merchant can be accountable when a chargeback occurs.[2][better source needed]

  1. ^ Tahor, Ofir. "Council Post: Friendly Fraud Looms Large As New Pay Later Options Arrive". Forbes. Retrieved 2023-06-23.
  2. ^ Poole, Riley (January 5, 2008). "Understanding Friendly Fraud". Merchant Talk. Archived from the original on December 30, 2011. Retrieved June 22, 2022.