Monica Eaton explores chargeback abuse, and its implications for the merchants and the payments industry at large, in a new guest feature for the Payments Association.
The Payments Association is the largest community in payments. Founded in 2008, the association operates in the UK, EU and Asia, helping almost 300 companies enhance their commercial interests, solve societal problems such as financial exclusion and evaluate new opportunities for innovation in payments.
“Unfortunately, invalid chargebacks are becoming more common,” Monica notes in the piece. “In the Chargeback Field Report, 72% of surveyed merchants reported increased fraudulent chargebacks, with friendly fraud cases rising by 18% over the past three years.”
Monica goes on to explain that merchants have the option to fight back against invalid chargebacks. However, being proactive and attempting to prevent chargebacks is always the better option.
“Chargeback abuse poses a significant financial burden on merchants, but there are ways to combat it. By implementing preventive strategies, engaging customers proactively, and utilizing security measures, merchants can reduce the volume of illegitimate chargebacks.”
