##Small businesses face a rise of ‘friendly fraud'

With Americans becoming more vigilant about their purchasing habits in the midst of layoffs and wage cuts due to the coronavirus pandemic, experts warn that small businesses will advocate for a rise in “good fraud.” It works like this: a consumer purchases a product or service charged with their credit card and then contacts their issuer to challenge the refund fee, or “chargeback”

Chargebacks are not ideal for retailers as they normally come with large charges that range from $20 to $100 everywhere. If a company has too many, its account could be shut down, or its transaction costs could rise. If a company accepts fraudulent payments, retailers may be kept liable by the card network to cover the costs.

#What is 'friendly fraud'?

It is when the registered cardholders challenge their credit cards with seemingly valid charges. With a fraud allegation, consumers may contact their credit card issuer and either complain that an item was not shipped or say that the transaction did not fit the description. To be sure, there's a chance that a customer will be truthful and will correctly flag the issue.

#Is there a way to dispute?

Experts advise businesses to have monitoring and delivery systems in place to verify that a customer has received their order. Another choice is to allow customers to sign upon delivery, providing a paper trail showing the ordered and shipped product.

#Can it be prevented?

The task of averting fraud is. The more information companies have about buying a client, the harder it would be for fraud to happen. Experts claim to buy use strict authentication tools.

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