With UK ecommerce spending set to reach £52.25bn in 2015, the threat of chargebacks has never been greater. As modern-day consumers choose faster and easier ways to shop, the risks of a chargeback being filed increases. Merchants and banks can no-longer ignore the risks and need to start looking ahead at how to protect themselves for the future.
The ecommerce industry will only continue to grow, so merchants and banks need to act now to protect and educate themselves against the risks. Chargebacks cost the global industry £40 billion in 2013 and merchants and banks of all sizes can be effected by the impact of chargebacks. There will be a similar trend in 2015 and in the years to come unless merchants and banks don’t address the problem and put the right tools in place to protect themselves.
With consumer access to additional digital channels, such as mobile and tablet devices, this only adds to the volume of ecommerce spending. Retail Gazette recently reported that in the UK alone, British shoppers are predicted to spend £14.95 billion via mobile devices in 2015. Both banks and merchants need to be aware of the omnichannel outlook of the retail industry and ensure they are aware of all the possible channels that can increase the risk of chargebacks.
The ecommerce industry has also dramatically expanded in Europe, with consumer spending shifting from traditional in store purchases to digital and online. This has meant that merchants and banks have become increasingly exposed to the threat of chargebacks, but also highlighted the scale of the issue.
Merchants and banks must realise the extent of the problem and fight to stay ahead of the curve to ensure they stay one step ahead of the threat.
