According to Chargebacks of customers admit to submitting a chargeback out of convenience. In other words a person who doesn't recognize a charge on their credit card statement will file a chargeback not realizing it was a purchase from your coffee shop three weeks ago and not bothering to figure it out on their own. Meanwhile you'll be fined on top of the refund so now you're out . Even worse people are committing return fraud and chargeback fraud on an alarming basis . A favorite trick is to order a lot of food at a restaurant and then call their bank the next day and say "The restaurant messed up my order.
I want a full refund." I've seen story after story of chargeback fraud during the pandemic including the closure of a popular Korean restaurant Spoon by H which was mobile number list shut down due to chargeback fraud. One way to avoid chargebacks is to participate in Visa's Order Insights and Mastercard's Ethoca programs (more on that later). You should also dispute large chargebacks especially if you believe the chargeback is in error or fraudulent. And you only have a short time to challenge them so don't miss that period. Finally make sure you know your chargeback rights as a merchant.
You don't have to just accept every chargeback that comes your way. There are ways to fight chargebacks and come out on top. . Demand return of damaged items One method of chargeback fraud is when customers report that a shipment has been damaged or stolen. They ask for a replacement because they know most merchants will automatically give them one. Only the damaged shipment was not damaged and the lost item was never actually lost (unless it was stolen by portico pirates). The fraudster is counting on you being so busy that it's just easier to send a replacement without them having to do extra work.