Chargeback Fraud is when cardholders dispute a transaction with the bank instead of contacting the merchant for a refund. Sometimes called friendly fraud, it involves actual consumers abusing the chargeback process to secure a refund. Despite the wide range of excuses people may use, there is an increasing likelihood that these sorts of claims are false and the intent dishonest. Why would a customer misrepresent a transaction? There are multiple potential reasons, including:
Reasons a customer would misrepresent a transaction:
Obviously, a certain number of claims filed will be legitimate, caused by merchant errors or criminal fraud. But the percentage of fraudulent chargebacks is growing exponentially each year.
The Challenges of Fighting Chargeback Fraud
More and more statistics back up the prevalence of chargeback fraud. So why isn’t something being done to stop this epidemic? There are several reasons consumers continue to get away with fraudulent chargebacks:
But ignoring fraudulent chargebacks can cause problems far beyond simple revenue loss. Failing to fight back can have severe, long-term repercussions. And it can do irreparable damage to a business’ sustainability.
Join GlobePay and fight Chargeback! We can solve this problem once and for all! GlobePay Limited is a professional RMB cross-border payment solution provider in the UK. Our company covers payment and financial services through our diverse and complementary sales channel, 180 ISO, 10 SaaS providers and sales team made up of over 100 professionals. At GlobePay, we strive to provide the safest and fastest payment solutions for your business. We are also a comprehensive platform that links Chinese clients to British business through WeChat Pay, Alipay, and Union Pay.
Both Alipay and WeChat pay do not support Chargebacks. As a result, all payments are guaranteed! Alipay and WeChat Pay will only re-credit the customers and debit the merchant, if Alipay and WeChat Pay receive a customer complaint and there is evidence that you have compromised the security of that payment. Alipay and WeChat Pay are extremely popular payment methods that Chinese use to make payments online or in-store from their mobile phone apps. With multi-billion users, Alipay and WeChat Pay handles most of China’s payments and transformed a cash market into a card-trusting market with their e-Wallet.
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