Friendly fraud is a dispute filed by the person who actually made the purchase. Sometimes it is a mistake. Sometimes it is a shortcut to a refund. Either way it now accounts for roughly 7 in 10 disputes on our network.
What counts as friendly fraud
A cardholder who forgets a subscription, a family member who used the card, a buyer who would rather call the bank than email support. None of them are criminals, and all of them cost you a fee.
The three biggest drivers
Unclear billing descriptors that customers do not recognise.
Subscriptions that renew without a reminder.
Support that is harder to reach than the bank.
Habits that cut repeat disputes
Send a renewal reminder three days before every charge. Put your brand name in the descriptor. Add a refund button to the order email. Merchants who did all three cut repeat disputes by 38% in six months.
“Most friendly fraud is a support problem that shows up on a bank statement.”
Key takeaways
Assume confusion before intent.
Make refunds easier to find than the bank’s dispute button.
Fight the repeat offenders with full evidence.
