Visa program combats friendly fraud losses for small businesses


New changes to its dispute rules and processes gives small businesses more tools to fight fraud and could save small businesses over $1 billion globally over the next five years


Visa, a world leader in digital payments, spotlighted the evolution of its dispute program, making it easier for merchants to fight first-party misuse, also known as friendly fraud or first-party fraud, for card-not-present transactions. This change could save small businesses over a billion dollars in losses globally over the next five years, in turn benefitting 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 necessitated 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 Ms. 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 unauthorized transactions.”

The rule change gives merchants more ways to show if a disputed charge is valid and authorized, 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 gamechanger for my business," said Mr. Nguyen Thanh Tong, Business Director, Tam Slife, which operates 16 Fitness and Yoga centers in Ho Chi Minh 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.”

“We applaud Visa’s new initiative that empowers Vietnamese businesses, especially SMEs and household businesses, with the tools they need to fight for rightfully earned payments,” said Mr. Tran Van Trong, General Secretary, Vietnam E-Commerce Association (VECOM). “As a fast-growing economy, Vietnam 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. In bolstering its safeguards against fraud, Visa is giving small businesses the opportunity to flourish and secure payment from legitimate transactions.”



About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at