The 2024 Chargeback Field Report, published by Chargebacks911, was recently spotlighted in a new feature for The Paypers.
The Paypers is a Netherlands-based leading independent source of news and analysis products for the global fintech, payments, and eCommerce industry. The company’s products are aimed at merchants, payment services providers, processors, financial institutions, fintech companies, and technology vendors. Their focus is on major global trends and developments in digital channels, digital transactions, digital identity, and securing transactions.
As noted in the piece, friendly fraud has been on a consistent upward trend of the last three years. “This trend reflects a shift from criminal fraud to first-party misuse as the primary challenge for merchants, exacerbated by consumers’ misunderstanding of the chargeback process. Notably, 75% of respondents considered filing a chargeback equivalent to requesting a refund, leading to system abuse.”
Chargebacks are having more influence on merchants’ business decisions. Despite this, a substantial number of merchants do not track key chargeback metrics, like second-cycle disputes.
“The report underscores the need for more robust fraud prevention measures, improved customer education, and better internal controls to mitigate the chargeback problem. Without these efforts, the report highlights that merchants risk ongoing financial losses and damage to their reputations.”
