In today’s digital age, online transactions have become an integral part of our daily lives. Whether it’s shopping, banking, or paying bills, the convenience of conducting transactions online cannot be denied. However, with this convenience comes the need for heightened security measures to protect our personal and financial information from cybercriminals. In this comprehensive guide, we will explore the best security practices for handling online transactions, ensuring a safe and secure experience.

Understanding the Importance of Security Practices for Handling Online Transactions

Online transactions involve the exchange of sensitive financial information, such as credit card details, bank account numbers, and personal identification. Without proper security measures in place, this information can easily fall into the wrong hands, leading to identity theft, financial loss, and other serious consequences. Therefore, understanding the importance of security practices for handling online transactions is crucial.

Choosing a Secure Platform for Online Transactions

When it comes to online transactions, choosing a secure platform is paramount. The platform you use should have robust security measures in place to protect your sensitive information. Here are some factors to consider when evaluating the reputation and trustworthiness of online platforms.

Evaluating the Reputation and Trustworthiness of Online Platforms

Before conducting any online transactions, it is essential to research and evaluate the reputation and trustworthiness of the platform you are using. Look for customer reviews, ratings, and testimonials to gauge the platform’s reliability. Additionally, check if the platform has any certifications or affiliations with reputable organizations, as this can be an indicator of their commitment to security.

Verifying SSL Certificates and Encryption Protocols

One of the key security measures to look for in an online platform is the presence of SSL (Secure Sockets Layer) certificates and encryption protocols. SSL certificates ensure that the data transmitted between your device and the platform’s server is encrypted, making it difficult for hackers to intercept and decipher. Look for the padlock symbol in the website’s URL, indicating that it is secure and encrypted.

Assessing the Platform’s Security Measures and Fraud Detection Systems

A secure online platform should have robust security measures and fraud detection systems in place. These measures can include multi-factor authentication, CAPTCHA verification, and transaction monitoring. Assess the platform’s security features and ensure that they align with industry standards to protect your information from unauthorized access and fraudulent activities.

Creating Strong and Unique Passwords for Online Transactions

Passwords are the first line of defense when it comes to securing your online transactions. Creating strong and unique passwords is crucial to prevent unauthorized access to your accounts. Here are some best practices for creating strong passwords.

The Importance of Password Complexity and Length

When creating passwords for online transactions, it is essential to prioritize complexity and length. A strong password should be at least eight characters long and include a combination of uppercase and lowercase letters, numbers, and special characters. Avoid using easily guessable information such as your name, birthdate, or common words.

Utilizing Password Managers for Enhanced Security

Managing multiple strong passwords can be challenging. This is where password managers come in handy. Password managers are secure applications that store and encrypt your passwords, allowing you to generate and use complex passwords without the need to remember them. They also provide the convenience of auto-filling passwords, reducing the risk of human error.

Implementing Two-Factor Authentication for Added Protection

Two-factor authentication (2FA) adds an extra layer of security to your online transactions. It requires you to provide two forms of identification, typically a password and a unique code sent to your mobile device, to access your accounts. By implementing 2FA, even if your password is compromised, hackers would still need physical access to your mobile device to gain unauthorized entry.

Recognizing and Avoiding Phishing Attempts

Phishing attempts are one of the most common methods used by cybercriminals to steal personal and financial information. It is crucial to be able to identify and avoid falling victim to these scams. Here are some tips to recognize and avoid phishing attempts.

Identifying Suspicious Emails and Websites

Phishing attempts often start with suspicious emails or websites that mimic legitimate organizations. Look out for red flags such as spelling and grammatical errors, generic greetings, urgent requests for personal information, and suspicious attachments or links. Be cautious when clicking on links or downloading files from unknown sources.

Verifying the Authenticity of Communication Channels

Legitimate organizations will never ask for sensitive information such as passwords or credit card details via email or phone calls. If you receive a suspicious email or call requesting such information, do not respond or provide any personal details. Instead, contact the organization directly through their official website or customer service hotline to verify the authenticity of the communication.

Educating Yourself and Your Team about Phishing Techniques

Phishing techniques are constantly evolving, making it essential to stay informed and educate yourself and your team about the latest tactics used by cybercriminals. Regularly update your knowledge about phishing techniques through reputable sources and provide training sessions to raise awareness among your team members. This will help minimize the risk of falling victim to phishing attempts.

Securing Your Devices and Networks

Securing your devices and networks is crucial to protect your personal and financial information during online transactions. Here are some best security practices to ensure the security of your devices and networks.

Keeping Your Operating System and Software Up to Date

Regularly updating your operating system and software is vital to ensure that you have the latest security patches and bug fixes. Cybercriminals often exploit vulnerabilities in outdated software to gain unauthorized access to your devices. Enable automatic updates whenever possible to ensure that you are always protected.

Installing Reliable Antivirus and Firewall Software

Installing reliable antivirus and firewall software is essential to protect your devices from malware and unauthorized access. Antivirus software scans your device for malicious software and removes it, while firewalls act as a barrier between your device and the internet, monitoring and blocking suspicious incoming and outgoing connections.

Utilizing Virtual Private Networks (VPNs) for Secure Connections

When conducting online transactions, especially when using public Wi-Fi networks, it is crucial to utilize Virtual Private Networks (VPNs) for secure connections. VPNs encrypt your internet traffic, making it difficult for hackers to intercept and decipher your data. Choose reputable VPN providers and enable the VPN whenever you are connected to public networks.

Safe Online Shopping Practices

Online shopping has gained immense popularity in recent years, but it also comes with its own set of risks. To ensure a safe online shopping experience, follow these best security practices.

Researching and Choosing Reputable Online Retailers

Before making a purchase from an online retailer, take the time to research and verify their reputation. Read customer reviews, check their ratings on trusted review websites, and look for any complaints or negative feedback. Stick to well-known and reputable retailers to minimize the risk of fraudulent transactions.

Verifying Secure Payment Options and Encryption

When making online payments, always verify that the payment options provided by the retailer are secure. Look for trusted payment gateways such as PayPal or Stripe, which offer additional layers of security. Additionally, ensure that the website has SSL encryption in place by checking for the padlock symbol in the URL.

Reviewing and Understanding Return and Refund Policies

Before making a purchase, carefully review the retailer’s return and refund policies. Understand the terms and conditions, including the process for returning or exchanging items and any associated fees. This will help you make informed decisions and avoid potential disputes or inconveniences in the future.

Protecting Personal and Financial Information

Protecting your personal and financial information is crucial to prevent identity theft and unauthorized access to your accounts. Here are some best practices to safeguard your sensitive information.

Avoiding Sharing Sensitive Information on Unsecured Networks

When connected to public Wi-Fi networks, avoid sharing sensitive information such as passwords, credit card details, or social security numbers. Public networks are often unsecured, making it easier for hackers to intercept and steal your information. If you need to access sensitive information, use a VPN or wait until you are connected to a secure network.

Regularly Monitoring Bank and Credit Card Statements

Regularly monitoring your bank and credit card statements is essential to detect any unauthorized transactions or suspicious activities. Review your statements carefully and report any discrepancies or fraudulent charges to your financial institution immediately. Prompt action can help minimize the impact of fraudulent transactions.

Safeguarding Social Security Numbers and Personal Identifiable Information (PII)

Social security numbers and personal identifiable information (PII) are highly valuable to cybercriminals. Safeguard these details by avoiding sharing them unnecessarily and storing them securely. Shred any physical documents containing sensitive information before disposing of them and use strong passwords or biometrics to protect digital files.

Best Practices for Mobile Transactions

With the increasing popularity of mobile payments, it is crucial to implement best security practices for secure mobile transactions. Here are some tips to ensure the security of your mobile transactions.

Installing Trusted Mobile Payment Apps

When using mobile payment apps, only install trusted and reputable apps from official app stores. Read reviews and check the app’s ratings to ensure that it is legitimate and secure. Avoid downloading apps from third-party sources, as they may contain malware or be fraudulent.

Enabling Biometric Authentication for Mobile Transactions

Biometric authentication, such as fingerprint or facial recognition, adds an extra layer of security to your mobile transactions. Enable biometric authentication whenever possible to ensure that only authorized individuals can access and authorize transactions on your mobile device.

Securing Your Mobile Device with Strong Passwords or Biometrics

Securing your mobile device with strong passwords or biometrics is crucial to prevent unauthorized access. Use complex passwords or passcodes that are not easily guessable and avoid using patterns or PINs that can be easily observed. Additionally, enable remote tracking and wiping features to protect your device in case it is lost or stolen.

Educating Yourself about Online Scams and Fraudulent Practices

Staying informed about the latest scams and fraudulent practices is essential to protect yourself and your finances. Here are some tips to educate yourself about online scams and fraud.

Staying Informed about the Latest Scams and Fraud Techniques

Cybercriminals are constantly evolving their tactics, making it crucial to stay informed about the latest scams and fraud techniques. Follow reputable cybersecurity blogs, subscribe to newsletters, and participate in webinars or workshops to stay up to date with the latest trends. This knowledge will help you recognize and avoid potential scams.

Recognizing Red Flags and Warning Signs of Fraudulent Transactions

Recognizing red flags and warning signs of fraudulent transactions is key to protecting yourself. Be cautious of unsolicited emails or phone calls asking for personal or financial information, requests for payment in unconventional methods such as gift cards, or offers that seem too good to be true. Trust your instincts and investigate further before proceeding with any transaction.

Reporting Suspicious Activities to the Appropriate Authorities

If you come across any suspicious activities or believe you have been a victim of online scams or fraud, report it to the appropriate authorities immediately. Contact your local law enforcement agency, your bank or credit card provider, and the Federal Trade Commission (FTC) to report the incident. Reporting such activities can help prevent others from falling victim to the same scams.

FAQs:

Q.1: How can I check if a website is secure for online transactions?

To check if a website is secure for online transactions, look for the padlock symbol in the URL, indicating that the website has SSL encryption in place. Additionally, verify that the website’s URL starts with “https” instead of “http.” You can also click on the padlock symbol to view the website’s SSL certificate information.

Q.2: What should I do if I suspect a phishing attempt?

If you suspect a phishing attempt, do not click on any links or provide any personal information. Instead, report the suspicious email or website to the organization being impersonated. You can also forward the email to the Anti-Phishing Working Group at [email protected]. Delete the email or mark it as spam to prevent further interaction.

Q.3: Are mobile transactions safe?

Mobile transactions can be safe if proper security measures are implemented. Ensure that you are using trusted and reputable mobile payment apps from official app stores. Enable biometric authentication for added security and secure your mobile device with strong passwords or biometrics. Avoid conducting transactions on unsecured Wi-Fi networks and regularly update your mobile device’s operating system and apps.

Q.4: How often should I change my passwords for online transactions?

It is recommended to change your passwords for online transactions regularly, ideally every three to six months. Regularly changing passwords reduces the risk of unauthorized access to your accounts. Additionally, change your passwords immediately if you suspect any compromise or if you receive a notification of a data breach from a service provider.

Q.5: Can I trust online payment platforms with my financial information?

Trusting online payment platforms with your financial information depends on their reputation and security measures. Choose reputable and well-established payment platforms that have a proven track record of security. Look for platforms that utilize SSL encryption, offer two-factor authentication, and have robust fraud detection systems in place. Read customer reviews and research the platform’s security practices before entrusting them with your financial information.

Q.6: What are the best security practices for handling online transactions?

The best security practices for handling online transactions include choosing secure platforms, creating strong passwords, implementing two-factor authentication, keeping devices and software up to date, recognizing and avoiding phishing attempts, encrypting data, regularly monitoring financial statements and transactions, and staying informed about online security threats.

Conclusion

In conclusion, implementing best security practices is crucial for handling online transactions safely. By choosing secure platforms, creating strong passwords, recognizing phishing attempts, securing devices and networks, practicing safe online shopping, protecting personal information, being cautious with mobile transactions, and staying informed about scams and fraud, individuals can significantly reduce the risks associated with online transactions. Remember, prioritizing security is essential for a safe and secure online experience. Stay vigilant, follow these best practices, and enjoy the convenience of online transactions with peace of mind.

The internet has undoubtedly made it easy for shoppers to buy things online with a single click of a mouse. From filling their carts to making payments during the checkout, you can execute any transaction online easily. However, that has also created many opportunities for scammers to hack into users’ devices and steal their private and sensitive data, such as credit card details or customers’ contact.

To enhance the security of online transactions, many security protocols, like SSL certification and TLS are used. TLS or Transport Layer Security is an encryption service that secures the communication that takes place over the internet. All kinds of communication, including emails and messaging, are protected by this security protocol.

With the growing cases of cybercrimes in the world, TLS is no longer optional. In fact, if you are running a commercial website on the internet without this security layer, there’s a good chance your website’s ranking will be affected. Search engines, especially Google, have made it mandatory for all websites to use advanced security protocols to protect their visitors’ confidential data and offer secure services on the web. In addition to the websites, payment gateways are also integrated with Transport Layer Security, as transferring payments through an unprotected gateway can lead to fraud.

So, what exactly is Transport Layer Security? How is it different from SSL? And why do you need it? Let’s find out.

Transport Layer Security Explained

TLS refers to the security protocol that secures the communication taking place between the servers and applications. The data transferred from points A to B is vulnerable to security risks. A hacker can misuse the technology to gain unauthorized access to the communication between the host and the server. As mentioned earlier, TLS has become a common practice for all website owners, app developers, and those sharing confidential data over the internet.

One of the biggest concerns for a merchant running eCommerce business operations is protecting customers’ confidential data. As they enter their card details on the payment page and submit the data for processing, it is the merchant’s responsibility to ensure that users’ data is protected.

How It Was Developed

You may have heard of the terms SSL and TLS used interchangeably for encryption technology. The history of TLS dates back to the SSL protocol, which was launched by Netscape back in the 1990s. TLS started as the 3.1 version of the Secure Sockets Layer, but its name was changed, so that people can know this new security protocol has nothing to do with the Netscape.

The protocol was introduced to the security market in 1999 and since its inception, the technology has witnessed many changes. Today, TLS is one of the finest and most robust security protocols that’s updated regularly to ensure protection against emerging cyber crimes. These updates were launched as new versions of the protocol.

Today, you can find a vast array of TLS iterations, including TLS 1.0, 1.1, 1.2, and 1.3, which were launched in 2018. The first two versions are not in use. Even the 1.3 version of the protocol is not used much. More than 90% of the merchants have implemented TLS 1.2.

How is TLS Different From SSL and HTTPS

TLS is the updated security model of the SSL. Unlike the Secured Sockets Layer, the last version of the TLS was launched pretty recently. The SSL’s last update dates back to 1996. The terms often confuse merchants and web developers, as both are security protocols and share certain similarities, like encrypting the data transmitted between two web applications or the host and the server.

However, TLS offers a higher level of protection and advanced security features than SSL. The protocol is also efficient and reliable in terms of communication speed and security. The technology doesn’t slow down the transaction. It improves your website performance while strengthening its security.

Hypertext Transfer Protocol (HTTP) is used for file transfers. It provides users with a platform for transmitting information across the web. HTTPS, on the other hand, refers to the TLS certificate. It indicates that the website you are accessing is safe and uses encryption technology to protect customers’ data. It’s important for all websites—be it a simple blog or an eCommerce platform, to have a TLS certification. Simply put, HTTP uses encryption technology (TLS) to offer data protection.

Each security protocol has one thing in common. They fight man-in-the-middle attacks and prevent hackers from accessing the information that was supposed to be delivered to the target recipient.

Reasons Your Business Needs TLS

The global DDoS attacks increased by 74% in 2022. The statistics clearly indicate the need for implementing TLS  security for their websites. When it comes to web security, Transport Layer Security is considered highly effective and one of the biggest fraud prevention tools. Google puts websites with TLS security on priority, as the technology protects merchants from data leaks, scams, and other security issues.

Of all cyber crimes, man-in-the-middle (MitM) attacks are extremely common. It is when a hacker gets unauthorized access to the data exchanged between a user and the web application. For example, the credit card details of the customers that they used to complete the transaction could be misused by a scammer through MitM.

Here’s how TLS strengthens your website security

• Authentication: Impersonation has become a common practice among attackers. That’s, in fact, one of the easiest ways for a scammer to get quick access to the customers’ data. To ensure protection against online impersonation, TLS uses an authentication protocol, which verifies the user’s details and confirms whether they are the right recipient or sender.
• Encryption: Encryption secures your data by converting it into secure codes. The information can only be decoded by the target recipient. So, even if the attacker conducts the MitM attack, the information they steal will be useless, as they can’t read the data without the decryption key.

The role of the TLS is to protect the data in transit. It maintains the integrity of the data, ensuring that the data was not tampered with on the way to the recipient. The security is ideal for preventing man-in-the-middle and DDoS attacks.

Pros and Cons of TLS Certification

While the TLS is mandatory for all web applications and users conducting their eCommerce operations online, there are certain drawbacks of the Transport Layer Security you shouldn’t overlook. Here are a few.

Pros

• It enables encryption, where the data is converted into unreadable text. This can also be accessed and read by the target recipient.
• The security prevents MitM attacks and any kind of scam that puts the business at risk of security breaches.
• Having a TLS certificate affects your search engine ranking, as Google prioritizes businesses that are secured with encryption technology. This is done to protect users from sharing their confidential data on an unsecured website.
• A TLS certificate indicates secure web operations. Websites that operate without this layer of protection are shown as unsecured in the search engine, driving users away from your websites.

Cons

• Registering for TLS can get challenging for web developers that don’t get this security protocol from their hosting provider.
• TLS can sometimes affect web performance, although the impact of this security protocol has been minimized to a great extent.
• As hackers have learned about the growing popularity of TLS, they are exploring the vulnerabilities in the protocol. There’s a possibility someone can bypass the TLS security and intercept communication between web servers and applications.

Does TLS Certificate Affect Your Website Performance?

The latest version of the security protocol has little to no impact on the website performance, although the TLS handshake does take up some time and storage. Fortunately, technology like “TLS False Start” can help reduce the latency effortlessly. The technology allows data transmission before the handshake. You can also use its Session Resumption technology, which is for web developers that have communicated previously, to transmit information using an abbreviated handshake.

These latest updates have made TLS fast and efficient with nearly zero impact on your website performance. Computational cost is also pretty low. If you want to ensure the fastest and most secure communication, you can upgrade to TLS 1.3, which shortens the TLS handshake process. With TLS 1.3, websites that have interacted before have zero-round trips, thus enabling faster and more streamlined communication between servers.

Conclusion

Nearly all reputable websites in search engines are protected with SSL certificates. With a vast majority of them using encryption technology, it’s obvious that every aspiring web developer or an eCommerce store owner needs to register for an SSL certificate to secure their websites and drive organic traffic.

Not just for the search engines and your website’s security, but TLS/SSL certificates are mandatory for businesses that want to establish their customer’s trust. If the TLS certificates are not included in your web hosting package, you may have to buy them separately for a small fee and install them on your servers.

With the growing popularity of eCommerce, friendly fraud has become prevalent more now than ever. If you don’t know what friendly fraud is, it’s chargeback fraud where the cardholders make a transaction on their credit/debit cards and mark it as invalid or illegitimate afterward. These transactions are processed by none other than the cardholders, who turn out to be perpetrators. A cardholder may make a genuine mistake of marking a valid transaction as illegal, but in most cases, people do it intentionally.

If their chargeback request is accepted, the company they bought from will be notified that a certain amount that was earlier credited to their account is sent back to the buyer. The results can be devastating for the company. Sadly, a vast majority of businesses don’t investigate such chargebacks, nor do they file disputes against them.

Illegitimate Chargeback: How Common Are They?

Do you know friendly fraud contributes to most of the chargebacks a company receives? Sometimes, it’s because they think the chargeback might be legitimate. Some merchants don’t look into such requests simply because the process is quite complicated and fighting the chargeback can result in transaction fees, which may sometimes exceed the amount paid by the customer. So, it’s pointless.

 

Contrary to what you believe, you can absolutely dispute chargebacks and can get the entire amount back. Read on to learn more about friendly fraud, how to identify them, and what’s the best way to prevent them. Traditional fraud involves a professional and tech-savvy attacker who has access to the necessary tools and years of experience conducting fraud. They know how to hide their identity, location, and other factors to trick people into revealing their sensitive information.

You might think friendly fraud is less likely to occur and can be easily caught, given the lack of sophistication. The reality is that this type of fraud is harder to detect than traditional tricks. Let’s learn more about friendly fraud.

Understanding What is Friendly Fraud

Also known as chargeback fraud, friendly fraud happens when a customer buys something using their credit/debit card on the online store and disputes the charge without any valid reason. To protect the interest of customers, a chargeback is allowed in cases when the merchant has not sent the goods and services they promised, or the customer was charged an invalid amount for items they have never purchased.

It’s advisable that the cardholder works with the seller to discuss the issue and resolve their problem before issuing a chargeback. That’s why it’s often considered as a last resort, i.e. it’s issued when the cardholder has tried to contact the merchant but they are not responsive.

Causes of Friendly Fraud

As mentioned before, not every chargeback is illegitimate. Some are genuine mistakes, while others might be intentional. It’s important that merchants are aware of the common causes of friendly fraud so that they can take action when necessary. Here are the four common types you should know.

Cyber Shoplifting

Customers conduct cyber shoplifting—filing an illegal chargeback—to get their money back. They may have read somewhere that disputing a charge on credit or debit cards can help customers get their total spending back, thus allowing them to buy a lot of stuff online for free. Considering the fact that chargebacks may not always result in a fair decision, customers might try it often, costing merchants hundreds of thousands of dollars.

A customer buys something from the merchant’s store and later calls their card-issuing bank and gives a fake reason why they’d like to dispute the charge. For instance, they might say the product was damaged or different from what they ordered and the merchant is not responding to the issue. Or, they might claim that the transaction was unauthorized, i.e. they never initiated the purchase.

Confusion

A customer may also initiate a refund for a transaction they do not recognize. There’s a possibility a customer buys something online but forgets about it. They might mark the transaction as unauthorized. If you’ve ever seen an odd transaction on your credit card statement, your first instinct would be to file a dispute against the charge. People get easily overwhelmed with unrecognized transactions and dispute a chargeback before verifying the authenticity of the transaction.

For instance, if you have subscribed to an annual membership of a video streaming service, the amount might get deducted from your account annually. But, people tend to forget such memberships and file a dispute before verifying the transaction although such disputes often end in the merchant’s favor, they may sometimes be regarded as valid, returning customers the amount they paid for the service.

Customer Dissatisfaction

Another reason for the chargeback is customer dissatisfaction. There’s a chance the customer might not be satisfied with the product or services they have received and may file a dispute for the charge without even contacting the merchant first.

The most obvious reason people would do that is when they believe the merchant has intentionally tricked them into buying something that’s totally different from what was advertised. They will think it is the merchant’s fault and instead of turning to them, they will contact the bank directly. At times, customers may try to work with the merchant to fix the issue, but if the latter doesn’t respond, their last resort is the bank.

Usually, merchants mention things associated with the refunds on their terms and conditions, which takes hours to finish. If you are like most customers, you would skip this section or just skim through the details. They set their own expectations for the product instead of what was agreed upon during the account registration or purchase. This results in illegitimate chargebacks.

Family Fraud

The one-click shopping may have been a very convenient option for adults, but it also increases the risk of family fraud. The technology has made it possible for customers to store their card information on their computers, allowing kids to buy stuff using the saved card details. You may have heard of the cases where kids bought unnecessary stuff using their parent’s credit/debit card details. If parents notice an unrecognized transaction on their credit card statement, they might contact the merchant to issue a refund. If that doesn’t work, they will reach the bank.

How To Prevent Friendly Fraud

Chargeback may seem hectic and costly to deal with, but with proper documentation and evidence, you might win the dispute and get the amount back. Although chargebacks don’t always favor the merchant, there are ways you can fight them by identifying the cardholders and saving their transaction details. Ideally, you should consider preventing such fraud. These tips may help you avoid friendly fraud.

Keep a Blacklist

Identifying customers who have filed an illegitimate chargeback before will help you avoid repeat offenders. This will make it easier for the merchant to win disputes by submitting proper documentation on time.

Avoid Confusion

Sending your customers an email about the upcoming payment for a subscription or the details of a specific amount deduction for buying a particular product or service can be really helpful. Your customers will either cancel the membership or continue it. The best part, however, is that keeping your customers informed about the payment will prevent chargebacks issued due to confusion.

Offer a Flexible Refund Policy

Your customers shouldn’t feel tricked into buying something that doesn’t match their expectations. They should be able to return the product within a 5-7 day window. This ensures a fair transaction and unnecessary chargebacks. For family fraud, your best bet is to issue a refund. Customer satisfaction should be your first priority. Besides that, the fee for disputing a chargeback is considerably higher than the transaction itself. So, it doesn’t make sense to investigate such issues and give a full refund.

Keep Records

Online retailers must have all documents for each transaction handy. This should apply to every purchase your customer has made on your platform. Their identity, location, day and date of purchase, and other details must be captured so that you don’t have to waste time finding this basic information when someone files a chargeback.

As a merchant, it’s your responsibility to look into chargebacks and dispute the ones that seem illegitimate. The biggest concern with chargebacks is that even if the merchant wins such disputes, they will get only the transaction amount credited back to their accounts. They will still lose the administrative fee or chargeback fee they may have incurred to dispute the chargeback. This discourages most merchants from investigating chargeback. They avoid such issues unless the amount in question is higher than the transaction fees.

Bottom Line

Friendly fraud is becoming more and more common in this digital age. As people are aware of the chargeback requests and how they usually favor the customers, they are misusing it to buy stuff and get their money back. Merchants need to identify their customers to detect offenders and prevent such fraud from costing them unnecessarily. The above tips will help you prevent friendly fraud and win chargeback disputes.