Good News for Health & Beauty Retailers; Bad for Digital Subscriptions
Retail industry publication Retail Times recently highlighted a Global Risk Technologies™’ industry report, analysing chargeback risks reported during the 2015 holiday season.
As the article explains, Global Risk Technologies™ collected data from hundreds of financial institutions around the world, analysing tens of millions of transactions processed during the last quarter of 2015. The comprehensive report focused primarily on high risk industries— health & beauty products, digital subscriptions, men’s & women’s products and diet supplements.
Based on those collected results, it seems that digital subscriptions are the industry hardest-hit by chargebacks. Regarding the results of the study, GRT co-founder and CIO Monica Eaton-Cardone had this to say:
What is particularly surprising about the new data is that it is the digital sector that is being hit hardest by chargebacks. Fraudsters are targeting vulnerabilities online that don’t exist in the card-present world. More needs to be done to protect consumers online to avoid unauthorised transactions being completed and hitting merchants in the form of costly chargebacks.
Eaton-Cardone enjoys wide recognition as an industry leader and expert on the subjects of chargebacks, fraud prevention and payments technology. As she explains in the article, the vast majority of chargebacks are fraudulent.
Eaton-Cardone also had this to say:
“In my opinion, chargebacks are generally a learned behaviour Most consumers do not intentionally attempt to get something for free the first time there is a dispute. However, once they profit from so-called friendly fraud, many are tempted to repeat fraudulent chargebacks. Fraudulent activity affects the merchant’s bottom line and in turn those losses are often pushed onto the prices consumers pay.”
Read the full article here.