How the Evolving Chargeback Landscape Will Impact Every Business’s Bottom Line
EMV migration, new rules, evolving technology: how will all the radical upheaval in the payments industry affect merchants, banks, and cardholders? Carolyn Sweeney, Director of Global Business Development for Chargebacks911, spoke with Andrew Deichler of the Association for Financial Professionals to answer that very question.
The Industry’s Main Challenge: Chargebacks
As Carolyn explains in the video, chargebacks have lost a lot of their use as a fraud prevention tool. Instead, chargebacks are more often a tool to commit fraud, rather than prevent it. “That sort of fraud chargeback, that sort of problem, has gone more or less away,” she explains, referring to card-present criminal fraud attacks in the European market.
Most chargebacks in contemporary eCommerce are friendly fraud, rather than criminal fraud. Dealing with this issue is going to be one of the primary challenges for payments in the coming years. It’s a challenge we can meet…if we have the right approach.
“The objective is to allow the consumer to continue spending on those products, and allow merchants to continue doing what they do best, which is commerce. So, our objective is to address the customer’s needs from an issuer and cardholder perspective, so they continue to spend and nobody gets bogged-down with chargebacks, and the same on the merchant and acquiring side. Allow the issue to be addressed quickly, and allow the customer experience to flow beautifully for both the cardholder and the merchant.”
Carolyn had some other very interesting, evidence-based predictions for payments that you won’t want to miss.