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The 'Friendly Fraud' Chargeback

By Monica Eaton-Cardone
November 02, 2013

The abuse of the chargeback option has resulted in a “friendly fraud” epidemic harming not only merchants, but the very consumers the programs were designed to help.

Google Executive Chairman Eric Schmidt recently predicted that 100% of the planet will access the Web to purchase goods and services by the year 2020. It is no secret that the Internet has profoundly changed the way we do business. See, “Google Boss: Entire World Will Be Online by 2020,” CNN.com.

With over $450 billon transacted each day, geographical boundaries are melding into a borderless digital exchange. Face-to-face relationships and old-fashioned “brand loyalty” are sacrificed in favor of an anonymous, multi-level playing field where no-name-products share the same shelf space and compete head-to-head with timeless favorites. When it comes to the online marketplace, advertising dollars set a new ante and present an equal opportunity for any seller to win a share of consumer spending.

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