How to Tackle the Hidden Cost of Pandemic Payments
Our friends and partners at FIS recently published a new blog post spotlighting the problem of chargebacks in the context of COVID-19, and what merchants can do to defend themselves.
FIS sits at the forefront of the payments processing landscape, helping their clients run, grow, and achieve more for their business by staying ahead of evolving markets. They process over 75 billion transactions around the globe each year for their roster of more than 20,000 global clients.
As leaders in the payments space, the experts at FIS are well-versed in the threat chargebacks represent for businesses. Friendly fraud, in particular, presents a substantial challenge, representing 70% of all credit card fraud. As cited in the piece, friendly fraud costs merchants more than $132 billion a year, not including the ancillary costs absorbed by merchants. Even worse, it’s a growing problem, with the article noting that half of the customers who commit friendly fraud will do so again within 60 days if successful.
“Our plea to merchants is this: Don’t accept chargebacks as simply a cost of doing business,” Chargebacks911 COO Monica Eaton says in the piece. “More chargebacks mean more lost revenue, additional fees and fines, and poor customer satisfaction, all of which have a long-term impact on bottom lines. Without concerted effort to balance this equation, merchants leave themselves open to increased losses, repeat instances of friendly fraud, and higher rates of attrition. This is a dangerous and unnecessary risk to take.”
