An advantage of buying a product or service with a credit card is the chargeback, a process that allows the customer to dispute a charge if the transaction does not complete successfully.

But one of the chargebacks can be friendly fraud, which occurs when a consumer without any valid reason, refuses to accept the cost of a transaction. They make a purchase and then report a false statement to your bank or card issuer to request a refund or chargeback.

These claims that fall back on the merchants, accounts for about 20 percent of the 138 billion U.S. dollars of credit card fraud is given annually to friendly fraud and honest merchants are really often the victims.

A New York company plans to change that. U.S. Trans Digital Corporation (USDT) is launching a “chargeback recovery service.” It is aimed at fighting against “friendly fraud” and notifying customers that false claims could damage their credit rating.

USDT said it would offer businesses both “soft and aggressive options for revenue recovery.”

Source:  Consumer Affairs