Friendly fraud is one of the fastest growing threats to firearms and firearms related businesses.

It looks like fraud on paper.

But in reality, it is often buyer remorse, confusion, or intentional abuse of the chargeback system.

If you run a gun store, range, training business, gunsmith shop, or firearms e-commerce operation, friendly fraud can quietly destroy profitability and put your merchant account at risk.

At EPIC Merchant Systems, we see this every day.

And while there is no 100 percent guarantee that friendly fraud can be eliminated completely, we believe the strategies in this article will help you significantly reduce disputes and improve your outcomes when they occur.

What Is Friendly Fraud?

Friendly fraud happens when a customer authorizes a transaction and later disputes it with their bank.

Common examples include:

• buyer remorse after purchasing a firearm or accessory
• a spouse or family member sees the charge and disputes it
• a customer ignores store policy and files a chargeback instead
• a customer claims they did not receive an item that was delivered
• a customer tries to force a refund outside of policy

From the bank’s perspective, this often appears as fraud or an unauthorized transaction.

From the merchant’s perspective, it is abuse of the chargeback process.

Why Friendly Fraud Is a Big Problem in the Firearms Industry

Firearms businesses are more vulnerable to friendly fraud for several reasons.

High dollar transactions

Firearms, optics, safes, and premium accessories involve large ticket sizes. Larger transactions are more likely to be disputed.

Compliance and delays

Background checks, permits, NICS delays, transfers, and waiting periods create frustration. Customers often blame the store even when delays are outside your control.

Emotional purchases

Firearms purchases are sometimes impulsive. When emotions change, buyer remorse follows.

Ecommerce resale value

Ammo, optics, and accessories are easy to resell. That makes them attractive targets for friendly fraud.

Higher risk underwriting

Firearms merchant accounts are often monitored more closely. Chargebacks have a greater impact on account stability.

Common Friendly Fraud Chargeback Scenarios for Firearms Merchants

Understanding the patterns helps you stop them.

Buyer remorse disguised as fraud

The customer regrets the purchase and claims they did not authorize it.

Refund disputes

The customer requests a refund outside policy and goes straight to the bank.

Item not received claims

The package was delivered, but the customer disputes anyway.

Permit or transfer denial disputes

The customer fails a background check and demands a refund that violates policy.

Store credit rejection

The customer accepted store credit at purchase, then disputes to force cash back.

How to Reduce Friendly Fraud for Gun Stores and Firearms Businesses

Friendly fraud is not stopped by arguing with customers. It is stopped by clear expectations and documentation.

Here are the most effective strategies.

1. Use a Signed and Initialed Policy Acknowledgment Form

This is one of the most powerful friendly fraud deterrents available.

Firearms merchants who require customers to initial and sign policies before purchase see fewer disputes.

Your policy acknowledgment form should clearly cover:

• firearm sales final
• deposits and special orders
• refund policy
• store credit policy
• buyer remorse language
• custom work and gunsmithing
• permits, transfers, and background checks

When a customer disputes later, you can prove they knew the rules.

Banks care about evidence, not opinions.

2. Reinforce Policies on Receipts and Store Signage

Friendly fraud thrives on ambiguity.

Reduce it by reinforcing policies:

• on the receipt
• on signage near the register
• on training signup areas
• on ecommerce checkout pages

Multiple disclosures make it harder for customers to claim confusion.

3. Fix Your Billing Descriptor to Prevent “Unrecognized Charge” Claims

Many friendly fraud disputes start with:
“I do not recognize this charge.”

Ensure your billing descriptor:

• matches your store’s public name
• includes a phone number when possible

This alone can prevent a surprising number of disputes.

4. Require Signature Confirmation for High Value Shipments

For ecommerce sellers, “item not received” friendly fraud is common.

Best practice:

• require signature confirmation above a set dollar amount
• save delivery confirmation and carrier records
• keep shipping communication with the customer

If you can prove delivery, friendly fraud claims are easier to fight.

5. Make Store Credit Policies Clear Before Checkout

Store credit is a smart tool when used correctly.

But friendly fraud increases when customers feel surprised.

If you offer store credit instead of refunds for certain purchases, it must be:

• clearly disclosed before purchase
• acknowledged by the customer
• reinforced on receipts and policies

When store credit is documented, it becomes strong chargeback evidence.

6. Provide Easy Access to Real Customer Support

Many friendly fraud disputes happen because customers cannot reach a real person.

Firearms businesses have an advantage here.

Make sure customers can:

• call a real phone number
• email a real person
• get a fast response

When customers feel heard, they are less likely to dispute.

How to Fight Friendly Fraud When It Happens

Friendly fraud disputes can be won, but only with the right evidence.

Step 1: Identify the Reason Code

Most friendly fraud appears as:

• fraud or unauthorized
• no show or canceled service
• refund dispute
• item not received

The reason code determines what evidence is required.

Step 2: Respond Quickly

Chargeback deadlines are strict.

If you miss the response window, you lose automatically.

Best practice is to respond within 48 hours.

Step 3: Submit a Clear, Organized Response Packet

Winning friendly fraud disputes requires structure.

Your response should include:

• a one page cover letter
• receipt and invoice
• signed and initialed policy acknowledgment form
• proof of delivery or service completion
• store signage photo if available
• customer communication records
• store credit documentation if applicable

The goal is to make it obvious that the customer authorized the transaction and understood the policy.

Important Reminder: Friendly Fraud Cannot Be Eliminated 100 Percent

Even with strong policies, documentation, and procedures, some friendly fraud will still occur.

Banks sometimes side with cardholders even when merchants provide solid proof.

However, firearms merchants who implement the strategies above consistently experience:

• fewer disputes
• fewer losses
• improved win rates
• stronger merchant account stability

Get the EPIC Merchant Systems Chargeback Prevention & Response Kit Free

To help firearms and firearms related businesses reduce chargebacks and friendly fraud, EPIC Merchant Systems created a Chargeback Prevention & Response Kit that includes:

• a firearms friendly policy acknowledgment form (initial + sign)
• sample receipt language
• store signage wording
• a one page chargeback response cover letter template
• evidence checklists by dispute reason code
• store credit language to reduce refund abuse

If you want the kit, contact EPIC Merchant Systems and we will provide it to you free of charge.

Frequently Asked Questions

What is friendly fraud in the firearms industry?

Friendly fraud occurs when a customer authorizes a purchase but later disputes it with their bank, often due to buyer remorse or policy disagreement.

Why is friendly fraud dangerous for firearms merchants?

Because firearms merchant accounts are often monitored more closely, friendly fraud can quickly impact processing stability and lead to account reviews or termination.

What is the fastest way to reduce friendly fraud?

The fastest method is implementing a signed and initialed policy acknowledgment form and reinforcing policies on receipts and signage.

FREE, NO OBLIGATION Chargeback Prevention & Response Kit

If you want to reduce friendly fraud, protect your merchant account, and improve your ability to win disputes, contact EPIC Merchant Systems and request the free Chargeback Prevention & Response Kit.