Countering Friendly Fraud: Legal Remedies for Chargeback Fraud | Disputed Transactions | PEP047

The Payments Experts Podcast

If you’re a merchant and you want help with chargebacks, this episode is for you! Friendly fraud is anything but friendly for merchants. In this eye-opening discussion, expert payments attorneys Larry Haines and Bryce Van De Moere expose the growing epidemic of customers who receive goods or services, then fraudulently dispute legitimate charges with their credit card companies. It’s chargebacks, baby – and they’re a growing problem.
Banks allocate mere minutes to review chargebacks and overwhelmingly side with cardholders—approximately 97% of the time—regardless of evidence presented. For merchants left holding the bag, this creates a seemingly impossible situation. But there's hope in pursuing legal remedies directly against these fraudsters.
The attorneys reveal powerful strategies for merchants to fight back, including litigation that can recover up to triple damages plus attorney's fees under California law. They explain how mechanics liens (which despite the name, aren't just for auto repairs) provide strong protection for anyone who provides labor or materials improving real property—from contractors to plumbers to classic car restorers.
Most compelling is their insight into the psychology of these fraudsters. Many are serial offenders whose confidence grows with each successful chargeback, escalating from small disputes to brazen theft. Picture someone staying at a hotel for three weeks, paying a $10,000 bill, then disputing the entire charge despite completing their stay.
For merchants tired of being victimized, this podcast offers a roadmap to recovery. With proper documentation and legal guidance, businesses can not only recover what's rightfully theirs but also develop a reputation that deters future fraudsters. The attorneys recommend focusing on disputes exceeding $5,000-$10,000, where the cost-benefit analysis favors legal action.
Ready to stop letting fraudsters walk away with your products and services? Learn how to turn the tables and make them pay.

Visit Global Legal Law Firm today: https://www.globallegallawfirm.com/

**Matters discussed are all opinions and do not constitute legal advice. All events or likeness to real people and events is a coincidence.**

A payments podcast of Global Legal Law Firm

Chapters

1. The Problem of Friendly Fraud (00:00:00)

2. Approaching Fraudsters Directly (00:02:05)

3. Legal Remedies and Triple Damages (00:04:30)

4. Mechanics Liens: A Powerful Tool (00:06:35)

5. Targeting Serial Fraudsters (00:09:48)

6. Minimum Amounts and Next Steps (00:14:15)