Friendly fraud tends to spike during the holiday season as consumer spending rises, and customers juggle multiple purchases across different channels. In the car dealership space, this can lead to more disputes related to service work, parts and accessories, deposits, and even year-end vehicle sales. Unlike traditional fraud, friendly fraud occurs when a legitimate customer initiates a chargeback on a valid transaction, often due to misunderstandings, forgotten purchases, or unmet expectations—issues that are more common during the busy holiday period. These disputes not only result in financial losses but also strain staff during an already high-volume season and can impact merchant standing going into the new year.

To stay protected, dealerships need strong processes, thorough documentation, and proactive communication. The best practices below can help minimize friendly fraud during the holidays while preserving trust and ensuring a smooth, customer-focused experience.

1. Strengthen Documentation for Every Transaction

Ensure all service orders, repair authorizations, and sales agreements are signed and clearly itemized
For remote payments, use the send payment link and capture written confirmation, or use secure authorization tools.
Include identifying transaction data (VIN, license plate, customer identifiers, etc.) to invoices to eliminate confusion later.

2. Provide Clear, Consistent Customer Communication

Send digital receipts immediately after payment to help customers keep track of holiday transactions.
Use automated reminders for deposits, service updates, or back-ordered parts.
Encourage staff to confirm contact information to avoid miscommunication during the busy season.

3. Reinforce Identity and Payment Verification

Match IDs to payment cards for in-person transactions.
Use enhanced verification tools for card-not-present or higher-risk purchases, such as service deposits or accessory orders.
Flag unusual behaviors—like multiple cards, large last-minute purchases, or mismatched payer information.

4. Set Clear Expectations for Service and Delivery

Holiday schedules, shipping delays, and parts shortages can lead to misunderstandings that become disputes.
Communicate turnaround times and potential delays upfront and document any changes.
Provide tracking numbers or proof of pickup for all parts and accessories.

5. Establish a Simple, Customer-Friendly Resolution Process

Train staff to handle concerns on the spot—customers who feel heard are less likely to go straight to their bank.
Offer quick ways to resolve issues through text, email, or a customer support line.
Keep records of all customer interactions in case a dispute later arises.

6. Monitor and Analyze Dispute Trends

Review prior years’ holiday chargebacks to identify patterns—such as specific services, products, or payment types.
Train staff on common holiday-season dispute triggers (e.g., gift purchases, forgotten service deposits).
Update internal policies based on actual dealership behavior patterns.

7. Leverage Payment Technology That Protects You

Use payment processors and platforms that offer fraud scoring, advanced authorization tools, and real-time alerts.
Capture digital signatures and store transaction details in one place for easy retrieval.
Ensure your payment provider supports representment for disputes with strong evidence packages.

8. Remind Customers of Refund & Special Holiday Policies

Clearly display return, refund, and cancellation policies in-store, online, and—when possible—on customer-signed documents.
For vehicle deposits or service specials, highlight the terms on receipts and verbal confirmations.
Require acknowledgement on seasonal promotions or limited-availability items.

As the holiday season brings increased traffic and transactions, dealerships can stay ahead of friendly fraud by combining clear policies, strong documentation, and proactive customer communication. With the proper preventative measures in place, stores can protect revenue, reduce disputes, and maintain positive customer relationships, ensuring a smoother, more secure close to the year and a stronger start to the one ahead.