“Friendly fraud” is costing small businesses time and money. Visa’s Mike Lemberger explains what it is and how to fight back.
In the fast-moving world of e-commerce, small businesses are seeing new opportunities to grow and innovate. That same digital expansion also opens the door to new kinds of fraud, notably “friendly fraud.” Mike Lemberger, SVP of North America Risk at Visa, sheds light on it in his article for Entrepreneur.
What you need to know
- What friendly fraud is. Also called first-party misuse, it happens when customers dispute legitimate purchases, leading to chargebacks. Causes include forgetting a purchase, not recognizing a merchant name, or a family member buying something without telling the cardholder.
- Why it’s growing. Incidents are rising significantly, and while it may seem less harmful than traditional fraud, it costs small businesses real money and time.
- How Visa is helping. New rules let small businesses present evidence against wrongful chargebacks, potentially saving billions in losses.
Knowledge is power in the ever-evolving digital marketplace.
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Why it matters
For small businesses, understanding and combating friendly fraud is vital to financial stability and growth. Lemberger’s full article is a must-read for owners navigating the digital economy and protecting their bottom line.
Source: Entrepreneur, by Mike Lemberger of Visa.
