InternetRetailing, the leading title for professionals in multichannel retail and ecommerce across the UK & Europe, this month features a Guest Comment from our CIO and Co-Founder, Monica Eaton-Cardone, exploring how chargebacks vary across ecommerce verticals, along with solutions to this rising problem.
Digital goods is the hardest hit sector in the UK for chargebacks, but particularly at this time of year, diet and nutrition, and beauty products also experience high rates of chargebacks. Monica explains why internet retailers should take note of this worrying trend:
“Considering card networks take punitive action when chargeback rates exceed a mere 1% of total sales, retailers in these industries can quickly breach allotted thresholds. This means that merchants will not only lose significant amounts of revenue, they’ll also pay excessive fees and suffer other processing restrictions.”
Effective chargeback management requires both long-term and short-term aims, disputing illegitimate chargebacks, to halt harmful consumer behaviour and reduce future risks.
Monica also share best-practice guidance on how merchants can make simple yet effective process changes to reduce unnecessary chargeback losses:
- Adhere to business best practices
- Learn from your experience
- Be available at all times
- Honour cancellation and refund requests promptly
- Make your case with the banks
- Clearly outline terms of service
- Communicate to maintain loyalty
- Create a dynamic mitigation strategy
No matter what industry merchants are in, solving the chargeback challenge provides increased benefits from rising transaction volumes as ecommerce continues to boom.
To read more, visit InternetRetailing here.