Why Credit Card Chargeback Fraud Is Becoming a Major Retail Threat, Even as Brands Invest to Improve Products - Tekedia

Friendly fraud is becoming a major problem in retail e-commerce as shoppers dispute valid card charges and keep the goods or services.

Retailers are responding with stronger fraud detection, better recordkeeping, and improved customer service to defend against abusive chargebacks.

AI and machine learning are increasingly being used to spot suspicious disputes and reduce losses for merchants.

The trend raises costs for businesses and may lead to higher prices and stricter policies for honest customers.