Chargebacks911 Founder and CEO Monica Eaton shares her insights on the broader economic effects of chargebacks in a new feature for Fintech Finance News.
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In the article, Monica cites data from the recently-published 2024 Chargeback Field Report, noting that chargeback misused by cardholders has a direct impact on how merchants price their goods and services. “The rise in chargebacks is becoming a vicious cycle,” Monica says. “Merchants are raising prices to cover the cost of disputes, but in turn, this pricing pressure gives more incentive to those inclined to commit first-party misuse. The data clearly shows that friendly fraud is the real issue, far surpassing criminal fraud in many sectors.”
Monica goes on to say that a more proactive approach will be needed. “By employing better chargeback prevention tools and leveraging professional dispute management services, businesses can reduce their exposure to friendly fraud and regain control over their bottom line,” she adds.
