Friendly Fraud
The customer got their order just fine — then tells their bank they didn't. Maybe they say "item not received" or "I didn't authorize this." It's theft, plain and simple, and it makes up 60-80% of all chargebacks. The "friendly" part is sarcastic.
Example
Tracking shows delivered, signed for. Customer files a chargeback anyway claiming they never got it. They keep the product AND get their money back. You eat the loss plus the dispute fee
Why It Matters
Friendly fraud — when a customer disputes a charge they actually authorized — accounts for up to 70% of all chargebacks. Most merchants assume chargebacks mean fraud, but the real threat is your own customers gaming the system.
Pro Tip
Fight every friendly fraud chargeback with delivery confirmation and order logs. Banks side with merchants who provide evidence.
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