Friendly fraud Definition.

“Friendly” fraud: the legitimate cardholder disputes a transaction they actually made, whether a forgotten purchase, a family member’s subscription they don’t recognize, or deliberate abuse. It accounts for a large share of e-commerce chargebacks and is hard to distinguish from true fraud at the time of the dispute. Visa tightened its evidence rules with Compelling Evidence 3.0 (2023), which lets a fraud chargeback be reclassified using the customer’s order history.