Chargeback Abuse vs. Merchant Fraud (Turkey): How to Stop Margin Erosion with 6502 and Network Rules

Chargeback abuse vs. merchant fraud is the fastest way margins erode in Turkey, unless your contracts, flows, and dispute process are aligned with Law 6502 and network rules.

One-line takeaway: In Turkey, chargeback abuse vs. merchant fraud both kill margins—one from the consumer side (friendly fraud, misuse of rights under Law 6502), the other from the seller side (misrepresentation, non-delivery). The cure is a contract-plus-operations playbook aligned with consumer law (Law 6502) and card-network rules (Visa/Mastercard): clear evidence standards, 3DS-first flows, dispute SLAs, and pricing/terms that defuse complaints before they become chargebacks.


Why investors care (margin math in one minute)

  • Direct take-rate hit: Every chargeback combines fees, lost COGS, ops time, and potential acquirer reserves.
  • Scheme pressure: Crossing network thresholds triggers monitoring programs and higher costs.
  • Valuation drag: Acquirers/PSPs haircut merchants with poor dispute metrics; boards see it as structural margin erosion, not a blip.

The two problems (and how they look in the wild)

1) Chargeback abuse (a.k.a. “friendly fraud”)

Pattern: Customer receives goods/services, then disputes the charge (“not me,” “not delivered,” “canceled earlier”).
Root causes: Poor cancel/refund UX, confusing subscriptions, vague product pages, or post-purchase regret.
Law 6502 angle: If disclosures are unclear, authorities and schemes tilt to the consumer—even when authentication was fine.

2) Merchant fraud (bad actors on your platform)

Pattern: Misleading listings, bait-and-switch, dropship non-delivery, counterfeit goods, or “trial” tricks.
Network rules angle: Acquirers must clamp down when reason codes cluster (e.g., non-delivery, merchandise not as described). Repeat offenders jeopardize everyone’s MID.

Investor translation: Whether the customer or the seller is the problem, evidence + process decides who pays—and whether your program stays out of network remediation.


Liability rails you actually operate on

  • Law 6502 (Consumer Protection): Requires clear pre-contract info, easy withdrawal/cancellation in distance sales, and fast refunds where due. If your merchant or marketplace flow frustrates these, expect chargeback uplift and regulator attention.
  • Card-network rules (Visa/Mastercard): Define reason codes, evidence checklists, and excessive chargeback programs with numeric thresholds. They reward clean 3DS usage, delivery proof, and timely representments.
  • Authentication reality (3DS/2FA): Strong auth helps, but won’t save a merchant with non-delivery or deceptive claims. Pair 3DS with product and policy hygiene.

The playbook: stop margin erosion in 5 steps

1) Set the rules in your contracts (short, enforceable, Turkey-ready)

A. Truth-in-listing clause (platform/merchant):
Merchant warrants accurate descriptions, shipping windows, and refund timelines; repeated gaps → tier upgrades (higher reserve, challenge-first auth) or suspension.

B. 6502-aligned refunds/cancellations:
Plain refund policy, one-click cancel for subscriptions, pre-renewal notice at D-3 and D-1. Failure → loss-sharing to merchant for related disputes.

C. Dispute evidence covenant:
Merchant must provide delivery/usage proof and customer comms within 5 business days; missing evidence shifts liability for that case.

D. Rolling reserve tied to metrics:
Reserve (%) scales up/down with chargeback ratio and reason-code mix; hard caps + cure periods avoid open-ended cash drains.

2) Engineer the checkout and post-purchase for fewer disputes

  • 3DS 2.x by default; step-up on risk (new device, cross-border, high ticket).
  • Click-wrap + snapshotting: Store the exact checkout state (price, plan, renewal) with hash/timestamp for ≥ 2 years.
  • Clear promises: Delivery ETA on the receipt; tracking link auto-emailed; easy refund/cancel entry point.
  • Subscription hygiene: Pre-renewal nudges; in-product cancel button; instant cancel confirmation.

3) Partition your catalog and traffic

  • High-risk SKUs/cohorts: Force 3DS challenge, longer settlement window, higher reserve, mandatory delivery proof.
  • Low-risk SKUs/cohorts: Frictionless flows to protect conversion; monitor drift and auto-reclassify weekly.

4) Run disputes like an assembly line (fast, documented, winnable)

  • T+2: compile dispute kit (3DS logs, click-wrap, delivery/usage, support thread).
  • T+5: representment filed; track win rate by reason code and merchant.
  • Feedback loop: If a merchant loses >X% on “not delivered,” auto-enforce signature or switch to challenge-first auth.

5) Publish transparent metrics (internally and to acquirers)

  • Chargeback ratio, fraud ratio, 3DS adoption/challenge pass, delivery proof attach rate, representment win rate, and refund-vs-chargeback mix.
  • Share a monthly risk report with your acquirer; traders who tell the truth get better terms.

Evidence kit (what wins cases)

Authentication: 3DS server/DS/ACS logs (ECI, CAVV/AAV), device ID, IP, timestamp.
Consent: Click-wrap proof + versioned T&Cs; checkout screenshot (price, renewal, return policy).
Delivery/consumption:

  • Physical: carrier scan/signature, GPS, photo at door.
  • Digital: login/IP logs, license activation, download/stream records.
    Support trail: timestamps, refund offers, policy links presented to the customer.

Rule: If it’s not logged, it didn’t happen. Build a one-click PDF dispute pack generator.


Detect and clean merchant fraud without killing GMV

  • Pre-list screening: Keyword + image hash models for prohibited items; KYC/KYB for sellers.
  • Early-life throttles: For first 30 days or until 100 successful deliveries, cap order value and force 3DS challenge + signature.
  • Post-purchase signals: Spike in “not as described” or “not delivered” → auto-review; require additional product photos or disable SKU.
  • Make good policy: Empower ops to auto-refund where evidence is weak; it’s cheaper than a chargeback and improves acquirer optics.

Talking to the customer (defuses abuse, avoids regulator heat)

Acknowledgement (neutral):

We’ve received your chargeback request. We’ll review your authentication, order details, and delivery records and update you within 3 business days.

If evidence supports fulfillment:

Our records show a two-factor approval at [time] and delivery confirmation ([tracking/scan]). If you don’t recognize the device or address, we can help check for account compromise and resolve this quickly.

If merchant fault likely:

We’re sorry—your order did not meet our delivery standards. We’ve refunded the transaction and opened a review with the seller to prevent recurrence.

(Keep AML-sensitive language neutral; never mention STR/SAR.)


Metrics boards and lenders expect (and how to show improvement)

  • CB ratio (monthly) and fraud bps
  • 3DS adoption, challenge pass %, frictionless fraud %
  • Reason-code mix (NDR, not-as-described, fraud)
  • Representment win % and time-to-kit
  • Refund share (refunds resolved before chargeback)
  • Merchant cohort heatmap (losses by seller and SKU)

FAQ (quick answers)

Q: If we force 3DS everywhere, are we safe?
A: It helps for “unauthorized” claims, but won’t rescue non-delivery or misleading listings. Pair 3DS with delivery proof and clear policies.

Q: Do Law 6502 rules mean we must always refund?
A: No—but they demand clear info and easy cancellations. When those exist and evidence supports you, networks often side with you.

Q: How do we cut reserves?
A: Share monthly metrics, enforce the rolling reserve ladder with cure periods, and show trend improvement (3–8 weeks).


Conclusion

Chargeback abuse vs. merchant fraud is the same story from two ends: weak disclosures and sloppy ops invite consumer disputes; bad sellers invite network scrutiny. Align your flows with Law 6502 and card-network rules, insist on evidence standards in contracts, and industrialize disputes. Do this, and you stop margin erosion, lower reserves, and keep acquirers—and investors—onside.

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