By Monica Eaton-Cardone, CIO and Founder of Global Risk Technologies™
The Office of National Statistics has just published new figures showing 11.4% growth in online sales in the UK, compared to June 2014. Meanwhile, research carried out by RetailMeNot with the Centre for Retail Research predicted that ecommerce is expected to be worth a staggering £156.67bn in 2015 by the end of this year.
Ecommerce has been shaped by the multichannel era, with consumers now choosing to shop via more convenient digital platforms including desktop, mobile and tablet devices. This boom in multichannel sales inevitably presents challenges – including, critically, rising levels of chargebacks.
The problem is that too many companies accept chargebacks as a cost of doing business – they needn’t be and they needn’t be a costly burden for businesses.
A chargeback is simply the return of funds to a consumer who has queried an item on his or her bank statement, or encountered a problem receiving an item they have ordered from a merchant. In almost every chargeback case the card issuer will always rule in favour of the consumer, hitting the retail business with the cost. Raising prices to compensate for this loss only serves to deter future sales.
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