Chargebacks occur for a variety of reasons. The most common reasons include fraud, friendly fraud, processing errors, failed deliveries, incorrect product descriptions, and a host of other issues.Friendly fraud alone continues to be a persistent problem for merchants worldwide. Recent evidence suggests friendly fraud costs businesses around $25b per year.[footnote]Visa. "What every merchant needs to know about friendly fraud". Accessed October 17, 2022.[/footnote] Having a flexible return policy and transparent customer support helps you avoid friendly fraud by encouraging customers to resolve refunds directly with your business.