Chargebacks911 Says “Don’t be Swayed”—Credit Card Marketing Unwittingly Promoting Liberal Chargeback Policies

Share Article

Chargebacks911 comments on the competitive credit card industry that has begun to use clever marketing ploys designed to attract consumers. But the company says that the ploys are guises for liberal chargebacks policies that inadvertently encourage consumers to pursue unwarranted refunds.

News Image
Credit card companies are misinformed in believing that advertising zero liability through very liberal, essentially effortless chargeback initiation which rewards higher profits and a more competitive market edge is a ‘risk free’ model for them.

The credit card industry is extremely competitive and is constantly looking for ways to attract new consumers, who are often put off by high interest rates and fees. Companies looking to compete have had to get creative, prompting many of them to forego lowering interest rates and instead promoting “liberal chargeback policies” designed to attract consumers with a promise of zero liability. But as cases of friendly fraud have grown to account for about a fifth of the fraud experienced by online merchants (1) and cost retailers nearly $12 billion in 2012 (2)—which some attribute to the ease with which consumers can now dispute a charge—dispute mitigation and risk management company Chargebacks911 says that these marketing tactics are setting a dangerous precedent by creating a landscape of no consumer accountability which leave merchants on the hook.

While some claims of friendly fraud are accidental—such as when a consumer reports “a charge because they don’t realize another member of their household made the purchase or the charge information on their statement doesn’t match up to a recognized retailer name” (2)—Chargebacks911 co-founder Monica Eaton-Cardone maintains that some of the current policies and marketing tactics of credit card companies are encouraging consumers to commit friendly fraud.

“Many companies are now promoting a ‘zero liability policy,’ meaning that cardholders are not responsible for fraudulent purchases made with debit and credit cards—but instead of protecting consumers, this policy essentially gives them a surefire way to secure a refund for any purchase, even if it was legitimate,” said Eaton-Cardone.

According to Eaton-Cardone, companies licensed by Visa and MasterCard issue credit cards to consumers, charge excessive fees and then encourage consumers to mitigate their costs by utilizing more liberal dispute processes, thereby breeding low responsibility among cardholders. But eventually, per Eaton-Cardone, consumers will run into merchants who fight back against what they deem to be an unjust policy—the outcome of which leaves the consumers with charges they couldn’t afford and so facing unpaid bills and becoming a short-term statistic for the bank. Recent reports indicate that nearly one-third of merchants are contesting all chargeback claims filed, and are winning a reported 40 percent of the cases. (3)

But in a stark and interesting contrast to the rest of the industry, American Express presented an opposing force against the overall practices of the credit card industry by posting a Chargeback Fraud Survival Guide, a move that has prompted some to say that the industry as a whole should be looked into—a sentiment with which Eaton-Cardone agrees.

“Credit card companies are misinformed in believing that advertising zero liability through very liberal, essentially effortless chargeback initiation which rewards higher profits and a more competitive market edge is a ‘risk free’ model for them,” said Eaton-Cardone. “They are incentivizing consumers to leverage loopholes in the system and further exploit chargeback fraud, because it is now a widely ‘accepted’ practice that not only banks are unwittingly endorsing—but the true cost negates the phantom profits they assumed were more favorable than reducing interest rates.”

Rather than accepting chargebacks as an unavoidable aspect of commerce, Chargebacks911 encourages credit card companies to adopt practices which offer unbiased protection to both consumers and merchants against dishonest and unauthorized credit and debit card purchases. Because the time-consuming process of fighting chargebacks can discourage merchants from disputing them altogether—a practice which Eaton-Cardone says inadvertently rewards incidents of chargeback fraud and leads to more chargebacks, rather than fewer—Chargebacks911 also suggests seeking the help of a chargeback specialist who can assist them with avoiding a significant monetary loss, while also ensuring the viability of their business.

Chargebacks 911 was created by Eaton-Cardone, a former online retailer herself plagued with friendly fraud, in order to provide solutions to merchants’ chargeback issues. After her own trial and error in experiences with chargeback issues, she formed Chargebacks911 to provide fast and reliable services that not only help to recoup the loss of funds as a result of increasing chargebacks, but to also curb future chargebacks so that merchants retain all processing abilities.

Chargebacks911 specializes in servicing merchants and the majority of banking institutions in mitigating chargeback disputes. The company has expanded its gross processing dollars to over $50 million per month for a variety of industries, including cosmetics and skin care, insurance and educational programs, private and public entities, healthcare companies, online dating sites, travel, insurance, retail merchandise, and bid sites.

For more information about Chargebacks911 and its services, visit

About Chargebacks911:

Co-founder Monica Eaton-Cardone established Chargebacks911 in September, 2012, out of necessity after many years as a merchant struggling to find a solution to chargeback issues. Chargebacks911 was developed specifically for merchants to offer immediate aid through proprietary technology and provide the necessary function that gives merchants the freedom to focus on their core competency and optimize their in-house skill set. Chargebacks911 specializes in servicing Internet merchants, and offers both response and resolution services for chargebacks and cardholder disputes. The company works with merchant clients to help them keep their dispute rates down and retain their ability to accept credit cards. Chargebacks911 provides a unique exception to standard dispute processing for dissatisfied consumers who wish to remedy transactional disputes, without the requirement of additional intermediaries or lengthy correspondence requirements. For more information, visit

1.    Rueter, Thad. “E-retailers Face the Threat of So-called ‘friendly Fraud.’” N.p., 27 Feb. 2014. Web. 10 June 2014.

2.    Harper, Elizabeth. “‘I Didn’t Buy That’: Friendly Fraud Costs Retailers $11.8 Billion a Year.” N.p., 20 Mar. 2014. Web. 10 June 2014.

3. July 20, 2013. Web. Feb. 6, 2014.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Karla Jo Helms
+1 (888) 202-4614 Ext: 802
Email >
Visit website