The CIO of Global Risk Technologies™, Monica Eaton-Cardone, was featured in ISO&AGENT on the subject of chargebacks. In recent years, chargeback levels have increase dramatically for ecommerce merchants, proportional to the increase in online sales.
“E-commerce sales have more than doubled in the past five years, from $144.9 billion in 2009 to more than $304.9 billion in 2014, according to the U.S. Commerce Department”
Chargebacks are forced refunds pushed on to the merchant by the issuing bank. Chargebacks occur for many reasons, but they are now being used as a way for fraudsters to steal from ecommerce merchants. Their actions are attributing to figures such as the below, mentioned in ISO&Agent’s recent article;
“Large e-commerce merchants lost 1.39% of their revenues to fraud in 2015, compared to 0.6% of their revenues in 2012.”
This rise in fraudulent chargebacks has caused ecommerce merchants to start acknowledging the issue and not just assuming chargebacks are a cost of doing business. As Eaton-Cardone states, “It’s no longer just a routine error on merchants’ balance statements.” The negative impact on merchants’ bottom lines has forced them to recognize that this problem cannot be ignored.
The increase in fraudulent chargebacks has also resulted in ISOs reviewing their chargeback policies to ensure they do their part to react to the chargeback problem.
“ISOs are paying much closer attention to chargeback thresholds and using more scrutiny when bringing on e-commerce merchants.”
In many cases, ecommerce merchants and ISOs have turned to third-party chargeback remediation specialist, like Global Risk Technologies™, to manage and reduce chargebacks.
Read the article in full here.