Right now, we don't cover friendly fraud. The reason is that it's largely out of our control. We can't control how well merchants communicate with clients, how fast/reliably they ship, etc. So if we covered it, it lowers the cost of treating customers poorly. There will always be a bad actor here or there, but that's typically less than 1% of chargebacks (at least from our data).

Wow, you're saying 99%+ of chargebacks are claiming not authorized? Would not have expected that.

Not exactly. Friendly fraud is when a customer is a clear bad actor and, even though they receive the goods/services, they claim they didn't.

Merchant-fault is typically behind many of the non-friendly-fraud and non-stolen-card-fraud chargebacks. This includes late shipments, not adhering to return policies, damaged goods, etc.