- “Many card disputes are filed without a valid reason. This is a practice called “friendly fraud,” and chargebacks tied specifically to that practice have continued to grow at a rate of approximately 20% each year. They’re growing so quickly, in fact, that friendly fraud is projected to represent nearly two-thirds of all chargeback issuances by 2023.
- A cloud-based AI approach could eliminate redundancies in the chargeback process. Much of the back-and-forth decisioning and reconciliation process could be cut. This would mean legitimate disputes are resolved in hours, rather than weeks, while friendly fraud chargebacks gradually disappear.
- Financial institutions could reallocate many of the 39,000 fulltime equivalent employees currently occupied with chargeback-related activities, allowing for greater efficiency in other departments.”
https://multichannelmerchant.com/blog/ai-can-resolve-chargeback-challenges-for-merchants-banks/