How Data Analysis And Communication Get To The Bottom Of Chargeback Claims

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Posted on September 11, 2020 Card-issuing financial institutions (FIs) have numerous stakeholders to protect when facilitating online transactions, as they must keep cardholders safe from criminal schemes while simultaneously defending merchants from shoppers who may be conducting friendly fraud. Issuers safeguard customers by detecting and thwarting bad actors’ attempts to use stolen details online as well as allowing consumers to file chargebacks should fraudsters manage to slip through and make illegitimate purchases.These protections enable customers to recoup funds lost in wrongful transactions, but consumers sometimes file claims on purchases they actually made. This means FIs must be able to distinguish genuine chargebacks from unwarranted ones to ensure that retailers are not unfairly harmed. The stakes can be high, too. Issuers need to offer consumers quick relief if they become eCommerce fraud victims, and those failing to do so may risk seeing customers pull other FIs’ cards to the top of their wallets. Banks and credit unions cannot simply take customers at their word without investigating, however, as rubber-stamping chargeback claims can put merchants in painful situations if they are compelled to refund legitimate transactions. Reliably filtering friendly fraud- from criminal misconduct thus depends on strong communication and deep customer insights, Mohamad …

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