Refund Fraud Prevention

Refunds may feel simple, but they carry risks if not handled carefully. Fraudsters sometimes exploit refunds to their advantage, and poorly managed refunds can still lead to financial loss.

• Issuing a refund to a different card or account can expose you to fraud.

• Friendly fraud - customers may request a refund and also raise a chargeback for the same transaction.

• Refunds processed outside of the original payment method can be challenged.

• Always process refunds back to the original card used for payment.

• Keep clear records of the refund (amount, date, reason).

• Communicate refunds to customers in writing (email or receipt).

• Be cautious if pressured for urgent or unusual refunds.