The concept

Friendly fraud is the chargeback opened by the cardholder themselves over a purchase they actually made, without a third party having misused the card. The reasons vary: forgetting the purchase, buyer's remorse not resolved directly with the seller, or a deliberate dispute to get the money back while keeping the product.

Unlike fraud with a stolen card, friendly fraud is not caught by fraud prevention at the moment of purchase, because the transaction itself is legitimate. Defense in this case depends on evidence: proof of delivery, a history of access to the product, communication with the buyer.

How it shows up in practice

A Brazilian buyer makes the purchase of your course, accesses everything for five days, and opens a chargeback saying they don't recognize the transaction. You have proof of delivery, login history, and know the purchase was legitimate. What happened is they want to keep the course and recover the money.

We see our customers as invited guests to a party, and we are the hosts. It is our job every day to make every important aspect of the customer experience a little bit better.

Jeff Bezos Source: Jeff Bezos's letters to Amazon shareholders.

Friendly fraud is a chargeback on a real purchase. It's not fraud with a stolen card, it's the cardholder contesting their own purchase. Your defense is to keep evidence: if you demonstrate access to the product, prior communication, or confirmed delivery, you recover the chargeback.