Chargebacks are an essential process for digital commerce. They’re also deeply vulnerable to abuse, though. As Monica lays out in her latest guest feature for the 2Checkout blog, the recently released 2022 Chargeback Field Report aims to shed some light on the situation through the lens of payment disputes.
2Checkout is a digital commerce platform for businesses that sell physical goods or digital products, such as online software and related products. Verifone acquired 2Checkout in September 2020, but their content remains as relevant and insightful as ever.
Figures from the survey indicate that most merchants polled experienced a higher number of chargebacks than in previous years. Also, the report indicated that merchants were embracing specific chargeback triggers and risk factors as “costs of doing business.”
In the piece, Monica outlines five major takeaways from the survey. For instance, the notion that chargeback terminology is regressing, despite industry efforts to mitigate impressions. There’s also the fact that expanding payment options complicate risk management, and that roughly two-thirds of merchants said friendly fraud had been a significant issue this year.
“As more and more cardholders become aware that the dispute process generally works in their favor, the more likely it becomes that friendly fraud will continue its upward trend,” Monica explains. “Since it is often in a bank’s best interest to err on the side of their cardholders in a dispute, the problem will almost certainly persist.”