ATASCADERO, CA — Friendly fraud is currently the largest contributor to overall loses from fraud, costing merchants nearly $13billion in revenue last year. And it is on the rise. However, merchants can take measures to protect their revenue from this rising trend through a process called representment. ChargebackHelp is spearheading an outreach campaign to inform merchants and provide them with these representment services.
Unlike criminal fraud, friendly fraud is perpetrated by the cardholder themselves. A cardholder reports a transaction as unauthorized even though they purchased and received the goods or services. These fraudulent disputes face very little scrutiny by issuing banks, and a chargeback is issued to the merchant as a result.
Since there was an initial authorization from the cardholder, the merchant has a strong case to dispute the cardholder's claim if they have compelling evidence that ties the cardholder to the purchase. This is known as representment. When the merchant initially submits a transaction to receive the funds from the cardholder bank, this is called "presentment." Chargebacks reverse the presentment process. So "representment" is the re-submission of a merchant's disputed presentment.
A successful representment allows the merchant to retain the revenue from a disputed transaction. Representment can also deter cardholders from making subsequent false claims with that merchant in the future. And a strong record of successful representment also sends a message to issuing banks to ease up on rubber-stamping their cardholder’s fraudulent disputes.
Merchants should not go it alone when fighting chargebacks. They often have limited knowledge of the representment process and their success rate is typically very low. ChargebackHelp has the knowledge of how to properly handle representment in a highly efficient manner. As a result, their success rate is double the merchant average.
For further information on representment, friendly fraud and compelling evidence, visit https://chargebackhelp.com or call ChargebackHelp at 1(800) 692-6319. We'll also be at IRCE June 25-27, booth 742.