Friendly fraud is misuse of the chargeback process by the actual cardholder, such as knowingly disputing receipt of goods that arrived. Unlike stolen-card fraud, the dispute originates with the authorised cardholder.[1] 'Friendly' does not mean harmless.
An unfamiliar billing descriptor or genuine delivery complaint does not establish fraud. Investigate before distinguishing confusion, a valid dispute and deliberate abuse. Retain relevant order and delivery information for any formal response. Do not accuse a customer solely because they dispute a charge or request a refund.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.