Friendly fraud`, also known as chargeback fraud, occurs when a cardholder disputes a valid purchase on their credit card transaction statement. This can lead to significant financial losses for businesses, as they must refund the customer and pay a fee to the payment processor, which can range from $20-$50 per dispute. Businesses are often put on monitoring programs if their dispute activity is too high, which can result in account termination. To prevent chargebacks, merchants can implement stringent authentication software at checkout, make clear and transparent refund policies, streamline their refund process, and send payment reminder emails to customers. Additionally, using explicit naming on transactions and fighting disputes with evidence can help mitigate friendly fraud. By implementing these strategies, businesses can reduce their dispute activity and avoid the financial losses associated with chargeback fraud.