Chargeback fraud, also known as
friendly fraud, occurs when a consumer makes an
online shopping purchase with their own
credit card, and then requests a
chargeback from the
issuing bank after receiving the purchased goods or services. Once approved, the chargeback cancels the
financial transaction, and the consumer receives a refund of the money they spent. When a chargeback occurs, the merchant is accountable, regardless of whatever measures they took to verify the transaction.