Distributed Ledger Technology and Chargeback Prevention

You know how the old saying goes: give a person a Bitcoin and they might realize some short-term investment gains for a day; teach them how the blockchain works and they’ll understand a technology with a lifetime of potentially useful applications. Something like that, anyway. The real prize of the cryptocurrency boom may well prove to be the concept of the blockchain itself, or as many now prefer to call it, distributed ledger technology. As with any new technology, sorting out the genuinely good ideas from the hype can be difficult. Some companies are promising that DLT could be a solution for excessive chargebacks and friendly fraud, but is this a real answer or just more blockchain boosterism?

To give this question its due consideration, we have to take a few steps back and look at the history of credit card fraud and the payments industry’s attempts to fight it. When the EMV chip was introduced, it struck a major blow to the use of stolen cards in card-present environments, making it much harder for fraudsters to spend other people’s money at retail stores and other brick-and-mortar locations.

Not surprisingly, credit card fraud shifted heavily toward the card-not-present environment: the world of ecommerce. Unable to rely on physical EMV chips to screen out fraudulent transactions, online merchants and consumers were faced with a growing problem of low-risk, high-reward credit card fraud carried out over the internet.

Full Text:
https://www.chargebackgurus.com/blog/can-distributed-ledger-technology-prevent-friendly-fraud

©Chargeback Gurus 2020
Production: Courtney Freeman 
Narration: Sarah Rife