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How do you combat "Friendly Fraud"?

by mrdeflation
8 replies
Just wondering if anyone can shed some light on this topic..

For those with intangible digital products, ebooks, info, memberships, courses...etc...

What if anything can you recommend to combat those people who are just plain evil, unscrupulous individuals who purchase something online with the full intent on consuming, downloading, using and keeping the digital product but also 100% set on putting in a dispute with paypal or cc merchant to get their money back?

Seems as time passes even though we deliver massive value we are getting more and more women who download our product but then put in a dispute as soon as they download the info/course/ebook.

https://en.wikipedia.org/wiki/Chargeback_fraud

Ideas?


Thanks!!
#combat #friendly fraud
  • Profile picture of the author Frank Donovan
    You don't say what market you're in, but most businesses will have to cope with an element of fraud. Normally, it's within acceptable levels and just a part of doing business online.

    A higher than average incidence suggests an issue with your targeting, your advertising message and/or media, or an inherent factor of your market.
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    • Profile picture of the author mrdeflation
      Originally Posted by Frank Donovan View Post

      You don't say what market you're in, but most businesses will have to cope with an element of fraud. Normally, it's within acceptable levels and just a part of doing business online.

      A higher than average incidence suggests an issue with your targeting, your advertising message and/or media, or an inherent factor of your market.
      fitness/health/wellness and "friendly fraud" isn't anything appreciable at this point that we REALLY need to worry about.... but

      Just pissed that people can continually get away with stuff like this and the merchant always loses
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  • Profile picture of the author MValmont
    I've sold thousands and thousands of products online and in my experience only a really low % will do something like this.

    I don't even think about it at all and I refund someone right away if they ask for a refund.

    But again, I'm in a few different markets and in my experience not a lot of people do this.
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  • Profile picture of the author ZanyZebra
    Originally Posted by mrdeflation View Post

    Just wondering if anyone can shed some light on this topic..

    For those with intangible digital products, ebooks, info, memberships, courses...etc...

    What if anything can you recommend to combat those people who are just plain evil, unscrupulous individuals who purchase something online with the full intent on consuming, downloading, using and keeping the digital product but also 100% set on putting in a dispute with paypal or cc merchant to get their money back?

    Seems as time passes even though we deliver massive value we are getting more and more women who download our product but then put in a dispute as soon as they download the info/course/ebook.

    https://en.wikipedia.org/wiki/Chargeback_fraud

    Ideas?


    Thanks!!
    It's an unfortunate cost of doing business.

    As others have said, you will get a small handful of people who do this but, in the main, people are honest and trustworthy.

    What is perhaps more worrying is the fact you are finding more and more people doing it. This would cause me to wonder if there was really something I was doing incorrectly to cause this. It may be time to review what you're doing and ask yourself the question.

    Good luck with your venture.
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  • Profile picture of the author Matthew Iannotti
    Best advice I can give is to log everything. Log when they signed into your website or downloaded said product, including their IP address used. Log IP address at time of order and if it doesn't match the billing from CC used, call number on order, if wrong number cancel order. Keep all emails and communications if any from said customer, the more evidence you have and can provide, you have a real good shot at winning the dispute. I don't call it friendly fraud, I call them thieves.
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  • Profile picture of the author Brent Stangel
    also 100% set on putting in a dispute with paypal or cc merchant to get their money back?
    Dispute infers they asked for a refund and were refused.

    Are you refusing refunds?
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    • Profile picture of the author mrdeflation
      Originally Posted by Brent Stangel View Post

      Dispute infers they asked for a refund and were refused.

      Are you refusing refunds?
      Since when does anyone have to offer a refund as long as you have an explicit no refund policy?

      So you are okay with people stealing from you?
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  • Profile picture of the author Kay King
    Since when does anyone have to offer a refund as long as you have an explicit no refund policy?

    So you are okay with people stealing from you?
    Is that your reaction to a customer complaint?

    You don't have to have a refund policy - your choice. Lacking a refund policy, unscrupulous buyers (or buyers with buyer remorse or who don't like what they bought) will go straight to Paypal dispute as it's their only option. They will often win.

    Refunds are part of doing business - either through a refund policy or through complaints to the payment processor.
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