Friendly Fraud

Disputing your own credit card charges.

Chargebacks were created as a means of consumer protection and are meant to be used to remove unauthorized transactions that appear on a cardholder’s statement. But as some dishonest consumers quickly recognized chargebacks to be a method of obtaining undeserved refunds for legitimate credit card transactions, a new term has arisen: “friendly fraud”.

With nonprofits "friendly fraud" happens when a donor makes an online donation or purchases an event ticket with his/her Credit Card and then calls the card issuer and requests a refund, citing fraud. The bank then refunds the money and the nonprofit is on the hook for the cash.

If you are intentionally committing chargeback fraud, it's 100 percent illegal and you are exposing yourself to a host of consequences, including jail time.

DONOR and TICKET PURCHASERS BEWARE! This nonprofit will actively pursue Civil, Criminal and/or other appropriate action against any individual who engages in an apparent act of  "Friendly Fraud" involving this 501 (c)(3) nonprofit.