What is friendly fraud? When real customers dispute real payments
By SendPay Business · · 2 min read
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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.
Try it
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Colour
What it does
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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.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
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
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.