Merchants estimate friendly fraud makes up about 44 percent of their chargebacks. Industry data puts the real figure closer to 75 percent, and a third of those claims trace back to genuine confusion, not deception.

Most merchants think about chargebacks after they happen, but the real leverage is in what you do before. Part 1 of a seven-part series covers 3DS2 authentication, AVS/CVV matching, delivery confirmation, and clear refund policies.

A chargeback doesn't start with a call to you. Funds reverse immediately, you get as little as a week to respond, and disputes can surface up to 540 days after the original sale. Here is how the whole process actually flows.