This is just fraud.
"Friendly fraud" is accidental or with the correct intentions – such as the customer not recognising the charge and charging back.
"Friendly fraud" is accidental or with the correct intentions – such as the customer not recognising the charge and charging back.
"Just fraud" is already taken for "criminal c uses unwitting cardholder a's card at unwitting merchant b", so what's your objection against "fiendly fraud"?
Even in the post you're wishy washy about what you want. They offer a product that does enhanced fraud detection but you don't like that. You correctly call out that there's major risks with taking a merchant's report and using it to flag a user's future transactions.
There are similar offerings from other companies. I don't know if bundling this with payment processing is common.