When you receive a dispute, do you know why the dispute was filed or what circumstances lead to it? Or is the first image that comes to mind when you think of a credit card fraudster a figure behind a computer lurking in the shadows? If the latter is the case, it's time to meet the other faces of fraud. Because "true fraud" (or fraud stemming from stolen credit cards) isn't the only type of fraud costing your company serious revenue.
In this video, the travelers had every intention of enjoying their vacation. Getting sick and having unforeseen circumstances that caused them to not enjoy their trip, is not the travel merchant's fault in any way. But the travelers felt like they deserved their money back. The video is an example of chargeback fraud. Chargeback fraud is when a customer maliciously disputes a charge in an attempt to get their money back, while still retaining the goods or services they receive.
By recognizing every type of fraud, merchants are prepared to rectify profitable customer relationships and terminate risky ones. Without the distinction, you're putting potentially valuable customer relationships in danger. Learn more about the three types of payment fraud and how to prevent them in The Three Faces of Fraud eBook.