Chargebacks911 founder Monica Eaton was interviewed for a recent Retail Today article that takes a closer look at the post-holiday return phenomenon known as the “chargeback hangover.”
Retail Today is an online portal and digital magazine that showcases news, emerging technology, issues, and trends shaping the retail and eCommerce industry.
Merchants and retailers are tallying their revenue from a successful, and at times record-breaking, holiday shopping season. But, according to the article, post-transaction specialists are warning businesses to be aware of the annual surge in disputes and first-party fraud awaiting them in the new year known as the “chargeback hangover” and how they can avoid it.
“Chargebacks can be a nightmare for retailers, especially those with problematic dispute resolution or fraud prevention systems,” said Monica. “Merchants need to act now before the peak season of chargebacks and product returns are upon them.”
Most chargebacks are filed 45-60 days after the initial purchase, which is why a spike in chargebacks begins occurring around mid-January for holiday purchases. With holiday spending up 7.6% from 2021, a correlated rise in chargebacks is expected. And, many of these disputes will be illegitimate.
“Merchants need to ensure their product return, and transaction dispute processes are performing as they should,” Monica went on. “Operators should go through their dispute procedure as if they were a customer and identify any points of frustration or unnecessary friction, which may push customers to file a chargeback with their bank rather than dispute the sale with the retailer.”
