Business owners will have more ways to show if a disputed charge is valid and authorised. – Photo Courtesy Visa Vietnam
Visa recently announced solutions to assist merchants to fight first-party misuse, also known as friendly fraud or first-party fraud, for card-not-present transactions.
This change, the company said, could save small businesses over a billion dollars in losses globally over the next five years and, in turn, benefit the entire ecosystem of consumers and merchants.
“Visa is committed to facilitating safe and secure transactions, and in response to an increase in first-party fraud, we have made necessary changes to limited aspects of our dispute process to give small and medium enterprises (SMEs) the tools that they need to ensure they receive the payments they have rightfully earned through legitimate transactions,” said Dung Dang, Visa Country Manager for Vietnam and Laos.
“While we stand with our small merchant partners in the fight against fraud, at the same time, Visa also remains steadfast in our dedication to protecting Vietnamese consumers from fraud, including our zero-liability commitment to cardholders for unauthoried transactions,” she said.
The rule change gives merchants more ways to show if a disputed charge is valid and authorised, helping business owners keep money that is rightfully theirs, while protecting legitimate cardholder activity.
The impact of first-party fraud can be devastating for small businesses.
“This rule change is going to be a game changer for my business," said Nguyễn Thanh Tòng, business director of Tam Slife, which operates 16 Fitness and Yoga centers in HCM City.
"I have been in tough situations where legitimate membership charges have been disputed. If I lose the dispute, not only do I have to refund the membership fee, I also need to pay for other dispute compensations. This change will help ensure I have a fair shot during those disputes.”
According to Vietnam E-Commerce Association, as a fast-growing economy, Việt Nam faces growing threats from first-party fraud, which can be particularly devastating to SMEs and household businesses as they have limited expertise in financial management. – VNS