Table of Contents
- Visa changes credit card chargeback rules to fight off friendly fraud
- Prevent fraud and chargebacks with Easy Pay Direct
Visa changes credit card chargeback rules to fight off friendly fraud
Amid the surge in e-commerce sales during the pandemic, payment card fraud has taken on a new form known as “friendly fraud”. This type of fraud involves consumers disputing legitimate purchases, claiming that they did not receive the item or do not remember making the purchase. According to Visa, friendly fraud can account for up to 75% of all chargebacks. To help merchants address this problem, the company has announced changes to visa chargeback rules that will allow them to provide additional information to prove the legitimacy of a transaction. These changes went into effect on April 15, 2023, and enabled merchants to provide evidence of the customer’s previous use of the same payment credential, login credentials, and product usage. The changes were developed in collaboration with clients, the Merchant Risk Council, and the Merchant Advisory Group. The move comes as losses from friendly fraud chargebacks cost merchants more than $25 billion a year, and a study by Sift Science Inc. found that almost one in five consumers who file a chargeback dispute have committed friendly fraud by making false claims. Visa hopes that by providing tools to take more fraud out of the equation, it can level the playing field for everyone in the ecosystem.
Prevent fraud and chargebacks with Easy Pay Direct
The move from Visa is a porsitive step forward for all merchants, but it does not stop chargebacks completley. Get even better protection with a merchant account from Easy Pay Direct equipped with Chargeback alerts. We will notify you of a chargeback before it hits your account. That way you can take preemptive measures and stop the chargeback in its tracks. To learn more, book a call with us below.
To further safeguard your business from chargebacks and fraud, consider reading our comprehensive guide on preventing chargebacks. This article offers practical tips and strategies to help you minimize the risk of chargebacks and protect your revenue.
