Online retailers need to prepare for hidden risks on the biggest shopping days of the year, writes our co-founder in The Paypers this week.
Monica takes a look at the busiest shopping days in Europe, the US and China, pointing to the stats that show rising chargebacks among the booming sales.
“The problem most closely associated around peak shopping days is buyer’s remorse. Customers feel pressured into buying something before it disappears, but then find a better deal elsewhere or change their mind. This regret often results in illegitimate chargebacks.”
Monica goes on to explain merchants risk loosing not only losing merchandise and revenue, but also the additional fees and consequences, particularly if they exceed allotted chargeback thresholds.
“Merchant liability often surfaces in the weeks following these shopping holidays–approximately 90 days after the purchase — as the costs of online fraud and chargebacks become apparent. Big purchasing events, like Black Friday, disrupt normal customer shopping behaviours, making it challenging to find and stop friendly fraud.”
Read the full article in The Paypers here.