Stopping the scam

We can help you investigate this tough-to-catch fraud without offending honest customers.

What is friendly chargeback fraud?

Friendly fraud is when a consumer illegitimately files a credit card chargeback, trying to make money off a legitimate transaction. For example, an e-commerce customer claims not to have received an item when in fact they did. If the business is unable to detect the fraud, the customer is refunded and keeps the item for free, meaning the business loses twice. Catching chargeback fraud can be very difficult for retailers because they don’t want to offend honest customers by suggesting they’ve committed fraud. At some point, retailers often decide to give the benefit of the doubt to the customer, leaving an opportunity for scammers.

How to prevent chargebacks

Friendly fraud is one of the tougher types of fraud to catch because throughout the transaction process, the benefit of the doubt favors the consumer. You should always include complete tracking information and thorough documentation of each stage of the customer’s buying experience so that you have as much information as possible to investigate friendly fraud. M&T Bank can help provide up-to-date solutions for card acceptance security, chip technology, PCI compliance and encryption and tokenization that can combat all types of credit card fraud, including chargeback fraud.

Learn how to help your business thwart off fraud. Visit your local M&T branch or schedule an appointment.


Small Business Fraud Types

Our resources can teach you and your staff how to recognize the signs of fraud and best practices for processing credit card transactions, avoiding suspicious hyperlinks, paying invoices, and much more. Learn more about types of fraud in small businesses.

Partner with M&T Bank

M&T’s Business Banking Specialists are ready to offer you support at any stage of your business. Get to know the advantages of being an M&T Business Banking client.