This is what I found on CNBC:
Small business owners are facing an overwhelming host of challenges right now, from having to shutter due to the coronavirus pandemic to struggling to obtain government loans in order to stay afloat. Unfortunately, there’s another mundane cash suck that’s on the rise: credit card fraud.
One particularly stressful problem is “friendly fraud,” which is anything but friendly. It occurs when a consumer receives goods or services and requests a refund (also known as a chargeback) from their credit card company rather than make a return.
As people become more conscientious about their spending, experts expect that friendly fraud will become a more common issue. The global payments advisory and research firm Mercator Advisory Group predicts an uptick in chargeback requests during this time of economic uncertainty, and small business owners have cause to be particularly concerned as they are often the ones left managing the costs.
Chargeback fees can range from $20 to $100 in addition to the cost of the product or service.
Information provided by CNBC.
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