Fraud
What is chargeback fraud?
Also known as friendly fraud or first-party fraud abuse, chargeback fraud occurs when a consumer makes a legitimate purchase and then disputes the charge with their card issuer, falsely claiming the transaction was unauthorized or that goods were never received. This shifts the financial loss to the merchant and can result in increased processing fees, reputational damage, and potential loss of the merchant’s processing privileges.
How it works
Example: A customer purchases a high-end laptop online, receives it, then contacts their bank to dispute the charge, claiming the package never arrived. The merchant is forced to refund the transaction and loses the product.

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©2026 Oscilar, Inc. All rights reserved.
AI Risk Decisioning™ and Oscilar™ are trademarks of Oscilar, Inc.

See Oscilar in action.
©2026 Oscilar, Inc. All rights reserved.
AI Risk Decisioning™ and Oscilar™ are trademarks of Oscilar, Inc.

See Oscilar in action.
©2026 Oscilar, Inc. All rights reserved.
AI Risk Decisioning™ and Oscilar™ are trademarks of Oscilar, Inc.

See Oscilar in action.
©2026 Oscilar, Inc. All rights reserved.
AI Risk Decisioning™ and Oscilar™ are trademarks of Oscilar, Inc.

See Oscilar in action.
©2026 Oscilar, Inc. All rights reserved.
AI Risk Decisioning™ and Oscilar™ are trademarks of Oscilar, Inc.

