Leading Industry Publication Features Information and Insight from Chargebacks911
The use of delivery services and click-and-collect is skyrocketing in the wake of COVID-19, which is causing a surge in chargeback activity. Leading industry publication Card Not Present cited information from Chargebacks911 in a recent feature about this growing problem.
Card Not Present is an independent voice providing original news, information, education and inspiration for and about the companies and people operating in the card-not-present space. They are one of the world’s most trusted informational sources focused solely on this growing segment of the payments industry.
The piece notes that digital channels are growing at a rapid pace, but that phenomenon is tied to an increase in chargeback issuances. The piece cites our 2018 State of Chargebacks study, which noted a substantial increase in chargebacks for merchants in the food and beverage sector that correlates with the use of online ordering.
The article notes that, despite seeing almost no chargebacks in 2013, more than one quarter of these sellers had a heightened chargeback rate. “…28 percent of food and beverage respondents had a chargeback rate between 0.5 and one percent of transactions,” the piece notes. “One in ten had a chargeback rate above one percent. Again, with a growing trend of food pickup and delivery, those numbers are likely higher now.”
The article also notes that, while Visa and Mastercard have taken action, more will be needed to stop this trend.