In a new feature for VentureBeat, Chargebacks911 Founder Monica Eaton suggests that, when regulation falls short, technology could provide a solution for concerns about chargebacks.
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In the piece, Monica notes that regulation developed by the Consumer Financial Protection Bureau (CFPB) doesn't typically take the merchant's perspective into account. Instead, the focus falls overwhelmingly on the side of greater consumer protections, resulting in greater costs for merchants.
“Protecting consumers against fraud and abuse is the right thing to do,” Monica explains. “It also helps to provide a solid bedrock for the market at large... The problem is that as cardholders have gotten more comfortable with the dispute process, they’ve learned ways to abuse the system.”
The good news, as Monica elaborates, is that technology may be able to fill the gap. “Fortunately, technology presents us with the opportunity to build a collaborative solution that benefits all parties without prioritizing the needs of one over another,” she says.
