Visa Rules for First Party Fraud

The big problem with fraud is that it’s always changing forms. As soon as regulators and consumers get wise to a particular scheme and learn how to prevent it, the fraudsters come up with a new way to steal people’s money. Many forms of fraud involve exploiting the chargeback process, which is why the card networks keep handing down new mandates to get them under control. Next month, new Visa rules will be taking effect to deal with first-party fraud. What is first-party fraud, and what do merchants need to know about the changes Visa is making?

Merchants already know one of the more common forms of first-party fraud, which we usually refer to as “friendly fraud.” In fact, they’re overlapping categories—friendly fraud can sometimes be the result of a genuine misunderstanding on the customer’s part, but first-party fraud is understood to be intentional. The subset of friendly fraud that is committed knowingly—like when a customer regrets a purchase and disputes the charge by falsely claiming they made the purchase by accident, or that their child made the purchase without their permission—would be considered first-party fraud.

Full Text:
https://www.chargebackgurus.com/blog/first-party-fraud

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