Chargeback Prevention

As unemployment rates soar and consumer spending shrinks accordingly, payment processors report that e-commerce chargebacks stemming from friendly fraud are increasing significantly. Friendly fraud is committed when a consumer who wants to escape liability for payment claims a valid credit card transaction was unauthorized.

Although chargebacks cannot always be completely avoided, there are steps you can take to help prevent them. The more you know about processing procedures, the less likely you might be to do, or fail to do, something that could result in a chargeback.

Tips for Internet and Mail Order/Telephone Order (MOTO) Businesses

• Use the Address Verification System (AVS) to ensure that your customer is providing you with the correct billing address.
• When sending merchandise to a customer, use a shipper that will be able to provide proof of