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Nothing Friendly About "Friendly Fraud"

Posted on 6.29.2014

“Friendly Fraud” is an $11 billion annual epidemic for merchants.

For those who are unfamiliar with the term, friendly fraud is when a customer reports a purchase they actually made as fraudulent, often resulting in a chargeback against merchants.

eConsumerServices, a third-party transactional dispute service, acts as a mediator between consumers and merchants as they try to resolve disputed claims. Prior to the creation of the young company, consumers would have to go to the banks directly to dispute a claim on their card. Now, all consumers have to do is contact eConsumerServices, that’s it.

For merchants, eConsumerServices is beneficial in two ways. The first, is that it expedites the process. Every second a dispute is open it’s eating up money. Therefore merchants want disputes to be resolved as quick as possible. For merchants that are an eCommerceServices Endorsed Merchant, they can count on claims being handled quickly. 


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Secondly, eConsumerServices works with merchants to investigate the claim before filing for a chargeback. Every time a chargeback claim is filed the merchant is fined, no matter if they win or lose the dispute. This affects merchants bottom line forcing them to charge consumers more for things like shipping and handling fees in order to make up their lost money.

Unfortunately, completely eliminating friendly fraud is not possible at this point in time. However, there are services available that can help to minimize costs and damages due to it. eConsumerServices is not a fix-all for friendly fraud but it at least offers merchants a helping hand to retain what is rightfully theirs.

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