Online shopping is reaching its peak for the year. Online retailers must maximise the biggest opportunities of the year and avoid the New Year chargeback hangover, but as our Co-Founder, Monica Eaton-Cardone recently wrote in Cards International, for many retailers that is easier said than done:
“Poor chargeback management is coming under increasing fire and better governance is becoming ever more critical in terms of saving costs. As the biggest shopping days of the year approach, those merchants who lack a disciplined chargeback policy are likely to be more vulnerable than ever before.
The greatest problem we see around the festive period is snap decisions on the side of customers and subsequent buyer’s remorse.”
Monica explains that:
“Merchant liability often hits in the weeks following the shopping holidays – approximately 90 days after the purchase — tripping merchants up after they’ve already calculated their seasonal profits. The biggest shopping days, such as Black Friday, disrupt normal customer shopping behaviours, making it challenging to find and stop friendly fraud.”
ID fraud is often highlighted as the greatest threat facing merchants, yet approximately 70% of chargebacks are actually attributable to friendly fraud, 20% to merchant error and 10% to criminal fraud.
Chargebacks are not just a cost of doing business. With comprehensive management strategies, merchants can maximise the huge benefits of the seasonal shopping surge without incurring huge, unjustifiable costs.
To read more, click here to visit Cards International.