Chargebacks911
How Reporting Tools Can Reduce Friendly Fraud While Meeting TRA Exemptions

Monica Eaton, Founder and CEO of Chargebacks911, was recently asked to share her insight regarding chargebacks and transaction risk analysis (TRA) exemptions in a new feature for The Paypers.

The Paypers is a Netherlands-based leading independent source of news and analysis products for the global fintech, payments, and eCommerce industry. The company’s products are aimed at merchants, payment services providers, processors, financial institutions, fintech companies, and technology vendors. Their focus is on major global trends and developments in digital channels, digital transactions, digital identity, and securing transactions.

Friendly fraud is a fast-growing threat in the European market. “Friendly fraud undermines the integrity of chargeback data, leading to inaccurate and unreliable fraud insights,” Monica explains in the piece. “As a result, front-end fraud filters rely on skewed data, causing good customers to be declined, while criminal activity remains unchallenged. The trickle-down effect of false declines on genuine transactions is a problem, expected to cost merchants up €400 billion in 2023 alone.”

Monica goes on to explain that chargeback management occurs in three phases. The first of these crucial steps is source identification.

“Merchants need to examine customer claims and the reasons codes attached to chargebacks, as well as available transaction data. Automation of the aggregated dispute data and elements required to analyse and decision prior to chargeback due dates is necessary to obtain ideal results. Dispute data reporting and analysis is necessary if merchants want to get useful insights.”

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