Friendly Fraud in Credit Card Processing: Online business is growing day by day in this century. In a world full of competitors. Every merchant wants a high position in the market. Position yeah!! It really matters a lot. This shows the goodwill in the market. Trust factor in the customer’s heart. Nobody knows the pain behind the success story of the merchant’s work.The proper working of the E-commerce website depends on many elements. Majorly the nature of the business. Credit cards the processing unit and complete knowledge of friendly frauds.
What Is Credit Card Processing?
The process of purchasing a product or service from a merchant is called a credit card processing. The whole process takes place with the help of the payment gateway.
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What Is High-Risk Business?
High-Risk Business is one that operates in a high-risk industry and has the risk of failing transactions. For example dating sites. Eeminar brokers, multi-level marketing. Finance companies, internet adult sites etc.
These segments are considered high-risk businesses. They tend to be managed very carefully.
What are Friendly Frauds?
Bomb Shot of Unrecognized Charges:
This time the ball is in the customer’s court. True, this usually happens. When the customer goes for the subscription of the goods or the services for a year or a couple of months and unknowingly after a certain point of time. The amount gets deducted from their account without their notice. In this case, the customer files a chargeback and in most cases wins it. Here, the merchant should patiently speak to the customer and resolve the matter before getting hit by a chargeback.
Not Me: A Huge Scream from The Customer’s Side.
This scenario happens when a product holder denies accepting the purchase of the product. The most common case. When a merchant gets a big no from the customer’s side for the purchase of the product and is asked to refund the amount.
At times the purchase is made without the notice of the cardholder. Meaning that the purchase is not into the notice of the cardholder and it was done by the family member or by a person who is aware of the cardholder’s information. Once the amount gets deducted from the cardholder’s account s/he creates an issue and raises a chargeback against it.
For this situation, the merchant should have a bag full of proof such as the transaction issuing date until the delivery date of the product/service with the signature proof. This truly makes the chargeback process smooth.
Shoplifting is the major thing that a customer does during the time of sale. It is a crime nonetheless, and online shoplifters can face serious legal problems. Such as charges of mail fraud.
A consumer purchases goods online using his credit card. Then he receives the goods then submits a statement to the credit card company claiming that he never received the goods.
As a result, the credit card company initiates a chargeback and forces the merchant to refund the customer’s purchase.
These are the conditions where a merchant faces a bad experience in his daily working of the business.
A merchant pays a lot to run his company well. To be a successful entrepreneur one has to be always on his toes. The above points clearly tell you about the complete scenario what a high-risk merchant account holder deals with.