How Digital Receipts Reduce Friendly Fraud by 40%

Friendly fraud—when customers dispute legitimate charges—costs the payment industry over $40 billion annually. But there's a simple solution that's been hiding in plain sight: digital receipts.

Understanding Friendly Fraud

Not all disputed charges are malicious. Many customers genuinely don't recognize transactions on their statements. A charge from "ACME PAYMENTS LLC" could be anything—a restaurant, a retail store, or a subscription service.

Without context, customers often dispute these charges "just to be safe," triggering a costly chargeback process that hurts merchants and issuers alike.

The Receipt Solution

When digital receipts are linked to transactions, everything changes. Instead of seeing a cryptic merchant name, customers see exactly what they purchased—item by item, with the store name, address, and timestamp.

"Oh, that was my coffee order from Tuesday" replaces "I don't recognize this charge."

The Numbers

Early data from our beta partners shows a 40% reduction in friendly fraud disputes when digital receipts are available. That translates to millions in savings for card issuers and reduced operational burden for merchants.

Beyond Fraud Prevention

Digital receipts aren't just about preventing fraud. They enable expense tracking, warranty management, returns without paper receipts, and integration with accounting software. It's a better experience for everyone.