In practice
The cardholder made or authorized the purchase but later disputes it, sometimes deliberately, often because they forgot, did not recognize the descriptor or found cancellation difficult. Clear descriptors, receipts, renewal reminders and easy refunds reduce it.
Common confusion
Not every friendly fraud case is deliberate abuse; many come from confusion that the merchant can prevent.
Frequently asked questions
Is friendly fraud illegal?
Deliberately disputing a valid purchase can be, but many cases are honest confusion. Card networks treat it as a dispute, not automatically as fraud.
How do merchants reduce friendly fraud?
With recognizable descriptors, receipts, renewal reminders, accessible support and easy refunds.