Solutions for Suspicious Transactions and Unauthorized Debits in Credit Card Disputes

Abstract

The proliferation of electronic transactions has made credit cards an indispensable tool in modern commerce. However, this convenience is accompanied by the escalating threat of credit card fraud, manifesting in suspicious transactions and unauthorized debits. This paper delves into the multifaceted challenges posed by these fraudulent activities, examining the existing mechanisms for dispute resolution and proposing enhanced solutions to bolster consumer protection. The research explores the complex interplay between cardholders, financial institutions, and payment networks, analyzing their respective roles and responsibilities in mitigating fraud and resolving disputes. Current solutions, such as zero-liability policies and chargeback processes, are critically evaluated, highlighting their strengths and limitations. The paper argues that while these mechanisms offer a degree of protection, they often fall short in providing timely and effective redress for cardholders. The investigation further explores the evolving landscape of fraud detection technologies, including machine learning algorithms and behavioral biometrics, assessing their potential in proactively identifying and preventing fraudulent transactions. A key focus is placed on the cardholder experience, examining the complexities and frustrations often associated with the dispute process. The research identifies key pain points, such as lengthy resolution times, cumbersome documentation requirements, and inadequate communication from financial institutions. Ultimately, this research aims to contribute to a more secure and transparent credit card ecosystem, empowering cardholders to confidently engage in electronic transactions while minimizing the risks associated with fraud.