Friendly Fraud

What friendly fraud looks like

Unlike stolen-card fraud, friendly fraud involves the real cardholder. They made or approved the purchase but later file a chargeback instead of asking the merchant for a refund. It isn't always intentional.

Common causes

• The charge on the statement doesn't match a name they recognize.
• A family member used the card without telling them.
• They forgot about a subscription renewal.
• They found it easier to call the bank than to contact the business.

How to prevent it

• Use a clear billing descriptor, ideally with your website or phone number.
• Send order confirmations and, for subscriptions, renewal reminders.
• Make it easy to cancel and to reach customer service.
• Keep records such as delivery confirmation, login activity and signed terms.

When friendly fraud does happen, responding with strong evidence can win the dispute back. It also protects your chargeback ratio.