Chargeback fraud
A dispute raised by a cardholder who did receive the goods or services they paid for.
Chargeback fraud, sometimes called friendly fraud or first-party misuse, is a dispute raised by a cardholder against a legitimate purchase they did receive or did authorise. Reasons vary from genuine confusion about a descriptor to deliberate abuse of the chargeback process. Merchants defend it through representment, supplying evidence that the customer received what they paid for.
What it means for travel businesses.
In travel, friendly fraud often appears after a holiday — disputes against deposits and balances on trips that were taken, refund requests that were already settled, or disputes that test whether the merchant has the evidence chain to defend. Without booking-level evidence linking payment, communication and travel record, defending is expensive and unreliable.
Friendly fraud is particularly pernicious in travel because the dispute often arrives months after the service was delivered. The customer has travelled, returned, and now disputes the charge — relying on the merchant’s evidence to have degraded over time. A travel business with strong booking-level evidence defends these successfully; one without often accepts disputes it should not.
The travel businesses that handle friendly fraud well preserve the booking, communication, supplier-confirmation and authentication evidence as routine, not as a response to disputes. The businesses that improvise evidence at dispute time lose representment they should have won and gradually train customers that disputes work.
How felloh handles it.
felloh keeps the booking-level evidence — payments, refunds, communications, supplier confirmation — attached to the same record, so chargeback fraud is defended with the original trail intact.
The dashboard’s Bookings and Transactions views preserve the customer journey — every payment, every communication, every supplier confirmation — long after the trip has ended. Where a friendly-fraud dispute lands months later, the Chargebacks workflow assembles representment evidence against the same record the booking was created in.
For travel businesses defending post-trip disputes against customers who travelled and returned, the evidence stays as fresh as the day the booking was taken. Win rates on friendly-fraud cases reflect the strength of the original record, not the operations team’s ability to dig through old emails.
Related terms.
Chargeback
A reversal of a card payment initiated by the cardholder’s issuing bank.Read termGlossary termChargeback reason code
The scheme-defined code that explains why a chargeback was raised.Read termGlossary termDispute resolution
The process of resolving a disagreement between a customer, merchant and issuer over a payment.Read termGlossary termFraud detection
The process of identifying potentially fraudulent payments before or shortly after authorisation.Read termGlossary termFraud prevention
Designing controls, processes and product flows to reduce the likelihood of fraud succeeding.Read termSee how this works around your bookings.
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