Monica Eaton-Cardone explores the growing threat of friendly fraud to European cardholders and merchants
Merchants will continue to be victimised by friendly fraudsters unless they act decisively to protect their profits, writes our co-founder in The Paypers this week.
In this article, Monica highlights the lessons that European merchants can learn from their US counterparts, who made mistakes in their ecommerce journey.
“The recent transition to EMV technology in the US has increased fraud exposure for merchants around the globe. Card-not-present fraud increased 215% in 2015.
While these stats are troubling enough, the situation is only going to worsen. Just 37% of US retailers have made the transition to EMV terminals, leaving plenty of opportunities for criminals in the brick-and-mortar environment. However, as more and more retailers make the transition to EMV technology, the last remaining card-present criminals will move online.”
Monica goes on to highlight that European ecommerce growth was just 10% in 2015 while chargeback rates increased by 20%:
“Merchants will continue to be victimised by friendly fraudsters unless they acknowledge the problem and act decisively to protect their profits. Ignoring the realities of friendly fraud will cause European merchants to join the ranks of those suffering needless revenue loss and jeopardising longevity.”
Read the full article here.