Chargeback Fraud

Chargeback fraud occurs when a customer intentionally disputes a legitimate transaction with their credit card issuer to reclaim a payment. Fraudsters use various tactics to challenge charges, such as falsely claiming a purchase was unauthorized, the product was defective, the item was never delivered, or that a return was sent back—often in response to brands detecting and denying FTID fraud. Brands can reduce chargebacks by keeping detailed transaction records, implementing clear return policies, and using fraud detection tools to gather evidence of fraudulent activity.