One common reason why customers ask for a refund is when there are two cardholders and the other bought something without the other knowing. It can be an exhausting situation to call customer service for a refund. There may also be moments when a client cannot remember their purchase. This state of affairs is possible for those people who are old. Therefore, shoppers need to have a FIDO2 biometric authentication. This program helps them shop fast and easily. Moreover, it keeps their account safe.
Numerous customers are taking advantage of the various online shops conducting an every-month sale. Even those who are scammers are taking advantage of this bargain, purchasing items as much as they want. Then, they will abuse their consumer rights protection and dispute a refund about their legitimate purchase. This scheme is called friendly fraud, also known as chargeback fraud.
Across many industries today, there is at least a 0.60% rate of average chargeback transaction. It is equal to 6 out of every 1000. That is why it is significant for companies to:
- Collect valid information about the customer and their transaction and notify them about their purchase details.
- They must use a clear descriptor. It is the label a customer sees next to the product or service they are planning to buy. It is generally pulled from the website gateway, or doing-business-as (DBA) recorded on the merchant account provider.
- Implement a 3D Secure protocol to add security to debit and credit card transactions. This program adds a layer to the fraud prevention mechanisms that mainly happen online. It requires cardholders to provide proof of identity before proceeding with their purchase.
These are the few ways to avoid friendly fraud. Continue reading the infographic below to know more about such a scheme and the other strategies to prevent it made by the company known for their biometric authentication service, Login ID:
