Payments Industry Expert Says Chargeback Abuse is on the Rise
A new Chase tool aims to help cardholders keep track of who’s storing their card information to prevent unexpected recurring charges. As Chargebacks911 COO Monica Eaton-Cardone explains in a new for Bankrate, this is more than just good service, but also a practical move on the bank’s part to help deter chargebacks.
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Monica notes a 25% increase in chargeback activity since the outbreak of the pandemic in early 2020. “Early in the COVID-19 pandemic, most disputes pertained to travel cancellations, but that has shifted to eCommerce transactions,” she explained for the piece. “eCommerce spending surged 32% in 2020, according to the Census Bureau, as the pandemic forced people to stay at home.”
Chargebacks exist to protect cardholders against fraud and abuse. However, many chargebacks are actually cases of friendly fraud. Banks, merchants, and cardholders all need to take this matter seriously, as chargeback fraud leads to higher costs for everyone.