Some chargebacks are based on actual fraud. Others come from customers who just don’t want to pay. If you’ve ever lost a winnable case, you’ve probably wondered which one you’re better off fighting. The truth is, not all fraud is treated the same. Friendly fraud vs chargeback fraud often leads to two very different outcomes, especially when it comes to winning.
The Key Difference: Intent and Evidence
Friendly fraud happens when the cardholder authorized the purchase but then disputes it anyway. Maybe they forgot they made the order. Maybe they didn’t recognize the name on their bank statement. Or maybe they’re deliberately lying. The purchase was legitimate, but the chargeback isn’t.
Chargeback fraud, on the other hand, usually involves stolen credit cards or unauthorized transactions. The buyer didn’t make the purchase, and the fraudster likely won’t be responding to any emails.
The biggest difference is also the evidence you’re allowed to submit.
Why Friendly Fraud Can Be Easier to Win (Sometimes)
Banks want to protect their customers. But if you show enough proof that the customer received what they paid for and had no reason to dispute it, friendly fraud cases can be won.
You’re usually allowed to submit things like:
- Delivery confirmation
- IP logs or device IDs
- Screenshots of usage after purchase
- Customer communication and support logs
If the buyer used your product, left a review, or contacted support, that’s evidence they made the purchase knowingly.
Still, win rates for friendly fraud vary by industry. On average, well-documented friendly fraud cases see about a 43% win rate for merchants. Physical goods with tracking numbers tend to do better than digital downloads or services.
Why Chargeback Fraud Is So Hard to Fight
With chargeback fraud, you’re not dealing with the actual cardholder. You're dealing with the bank trying to recover funds from a stolen card. Most of the time, your evidence won’t matter because it doesn’t prove anything to the real cardholder. And the cardholder didn’t buy from you in the first place.
In most cases, the bank sides with the cardholder by default. The merchant is expected to eat the loss.
That’s why chargeback fraud has a much lower win rate than friendly fraud. Even if you did everything right, you probably won’t get the money back.
What You Can Do to Improve Outcomes
You can’t control why someone files a chargeback, but you can control how you respond.
Here’s what helps:
- Use clear billing descriptors to prevent mistaken identity
- Collect as much customer data as possible (IP, device, usage)
- Keep a detailed history of customer communications
- Require CVV and AVS checks for payments
- Use a chargeback tool that flags potential friendly fraud
Even if you lose one case, building strong documentation helps you win the next.
Conclusion
When comparing friendly fraud vs chargeback fraud, your chances are better with friendly fraud. You’re dealing with someone who actually made the purchase, which means your evidence carries more weight. But chargeback fraud often leaves you stuck, especially if you’re not working with advanced fraud tools or prevention methods.
Understanding the difference lets you focus your efforts where they count. That can mean the difference between recovering revenue and watching it disappear.
FAQ: Friendly Fraud vs Chargeback Fraud Win Rates
What’s an example of friendly fraud?
A customer buys something online, receives it, and then files a chargeback saying they didn’t authorize the purchase. They might do this to avoid paying or because they didn’t recognize the charge on their statement.
How is chargeback fraud different from friendly fraud?
Chargeback fraud involves a stolen credit card or unauthorized transaction. Friendly fraud happens when the buyer makes the purchase but falsely disputes it later.
Can I win a chargeback case if it's true fraud?
It’s rare. If it’s true fraud (the cardholder didn’t make the purchase), you usually don’t win. The issuing bank prioritizes cardholder protection over merchant claims in those cases.
Why do friendly fraud disputes sometimes get approved for the merchant?
Because you can show that the buyer actually received and used the product. If your evidence is clear, banks may side with you even if the customer claims they didn’t make the purchase.
Should I bother fighting chargeback fraud?
Only if you have a strong reason to believe it’s friendly fraud mislabeled as chargeback fraud. Otherwise, it’s better to focus on fraud prevention and reducing future exposure.
Chargeblast Can Spot the Difference Before It Hits Your Dashboard
Some chargebacks you can win. Others aren’t worth the fight. Chargeblast helps you spot friendly fraud early and auto-builds the strongest case possible, without wasting time on lost causes. From pattern analysis to bank-specific formatting, we handle the dispute process so you don’t have to second-guess which one you’re dealing with.
Book a demo to see how Chargeblast helps you win more of the cases that matter.
