Chargeback - Fraud Policy

1. Purpose

The purpose of this Chargeback Fraud Policy is to outline the procedures and guidelines for addressing chargebacks initiated by customers in a fraudulent manner. This policy aims to protect our business against unwarranted financial losses resulting from illegitimate chargeback claims.

2. Definition of Chargeback Fraud

Chargeback fraud occurs when a customer disputes a legitimate transaction with their financial institution, claiming that the transaction was unauthorized or fraudulent, despite having received the goods or services as agreed upon. Chargeback fraud also encompasses instances where the customer abuses the chargeback process for personal gain or to avoid payment.

3. Identification of Chargeback Fraud

We will closely monitor and investigate all chargeback requests to identify potential instances of fraud. The following are common indicators of chargeback fraud:

– Multiple chargebacks from the same customer within a short period.
– Inconsistent or conflicting information provided by the customer.
– Evidence of the customer receiving and using the purchased goods or services.
– Transactions made with stolen credit card information.
– Attempts to exploit our refund or return policies for fraudulent purposes.

4. Prevention Measures

To mitigate the risk of chargeback fraud, we will implement the following preventive measures:

– Implement robust authentication and verification processes for online transactions.
– Use fraud detection tools and services to identify suspicious activities.
– Maintain detailed records of transactions, including customer information and order details.
– Clearly communicate our refund and return policies to customers to minimize misunderstandings and disputes.

5. Response to Chargeback Fraud

Upon identifying a chargeback request as fraudulent, we will take the following steps:

– Gather all relevant evidence, including transaction records, communication with the customer, and proof of delivery.
– Submit a comprehensive response to the financial institution, providing evidence to refute the fraudulent claim.
– Cooperate with the financial institution’s investigation process and provide any additional information or documentation as required.
– If necessary, pursue legal action against customers who engage in chargeback fraud to recover any losses incurred by our business.

6. Customer Education

We will educate our customers about the consequences of chargeback fraud and encourage them to resolve any issues or disputes directly with us before initiating a chargeback request. We will also provide clear instructions on how to contact our customer support team for assistance with any concerns or inquiries.

7. Review and Update

We will regularly review and update this Chargeback Fraud Policy to ensure its effectiveness and relevance in addressing emerging threats and challenges related to chargeback fraud.

8. Compliance

All employees involved in processing transactions and handling chargeback requests are required to adhere to this policy and follow the prescribed procedures for addressing chargeback fraud.