72% of merchants have experienced an increase in chargebacks in just the last three years. And, as Chargebacks911 CEO Monica Eaton explored in a recent feature for The Fintech Times, this is causing merchants to raise prices for end consumers.
The Fintech Times is a bimonthly publication exploring the explosive world of financial technology. They blend first-hand insight, opinions, and expertise with observational journalism to provide a balanced and comprehensive perspective of this rapidly evolving industry.
“The rise in chargebacks is becoming a vicious cycle,” Monica explains in the piece. “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.”
As explored further in the piece, new AI-enabled tools could help mitigate this problem. But, businesses still need to do more to address underlying issues and educate customers.
