What is friendly fraud? When real customers dispute real payments
By SendPay Business · · 2 min read
Friendly fraud is when a customer asks their bank to reverse a card payment they really made, instead of asking the business for a refund. Sometimes it is a genuine mix-up; sometimes it is on purpose.
Common causes
- The customer doesn't recognise the name on their statement.
- A family member used the card without the cardholder knowing.
- The customer forgot about a subscription that renewed.
- The customer wants their money back and finds a chargeback easier than a refund.
Why it hurts
A chargeback takes the money back and usually adds a fee on top, so the business loses the sale, the goods and the fee. Too many chargebacks can also push up a business's chargeback ratio, which card schemes and providers watch closely.
Cutting it down
Use a clear business name customers will recognise on their statements, send receipts and renewal reminders, make refunds easy to ask for, and keep proof of delivery. Many disputes disappear once customers can see what they paid for and how to get help.
Where SendPay fits
SendPay platforms give your business payment links, invoicing and subscriptions under your own brand, so customers pay through pages that carry your name.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What does a chargeback really cost?
Weigh refunding, accepting or fighting a dispute.
Chargeback cost calculator →Refund or chargeback?
A refund comes from the seller; a chargeback from the bank.
Refund vs chargeback →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.