Take Steps to Reduce Friendly Fraud

Friendly fraud has become a common problem for smaller businesses all over the world. It is basically the situation when a customer after having placed an order claims that he had not ordered one in the first place or didn’t receive it as his end.
Such circumstances usually result in friendly fraud-charge backs which are basically disputes the customer raises with the merchant banks after he has been charged for a particular commodity.
This results in fines and eventually a great deal of loss for the merchant. To avoid friendly fraud, some of the following points can be taken care of:

Customer care – The more information you share with customers about their orders, the safer it is for the business. Apprising the customer of their order and the process at various intervals is a good practice. Terms and conditions should be clear and easily accessible when the customer is making the purchase. Also a customer care line has to operate 24 hours to assist customers with doubts.
Detailed recording – Keeping detailed customer records including IP addresses, digital signatures, etc. is advised so as to track a disputed order when customers raise issues.
Electronic page signatures – Customers should always be made to sign one to ensure they are aware of the company’s terms and conditions.
Noting the codes – Card security codes are compulsory to note as different vendors use varying number of digits. This is to ensure duplicity or customer fraud.
Address verification – Verify the address the customer gives against the addresses in the bank account details. In case of stolen cards, there can be a mismatch.