Dangers of Friendly Fraud
Friendly Fraud can cause you to lose your Merchant Account
What would happen if your Merchant Account was shut down tomorrow?
In most cases, you would be at serious risk of losing your online business and the entire customer-base you’ve built.
If you have been a victim of friendly fraud, this means that one of your customers has reported a transaction as “unauthorized” to intentionally game the system, leaving you with a chargeback. Unfortunately, the damages of friendly fraud are much more severe than simply losing the money from the transaction.
The sad reality is that as soon as you get close to a 1% chargeback ratio, you become at risk of being forced to pay higher interchange rates, deal with rolling reserves, and even losing your Merchant Account.
But don’t worry - we’re here to help!