Chargebacks911 founder Monica Eaton recently contributed alarming chargeback data to a Crowdfund Insider article that seeks to expose the link between online sales increases and chargebacks.
Crowdfund Insider is a leading news and information website covering the emerging global disruptive finance industry. This includes investment crowdfunding, blockchain/distributed ledger technology, digital assets, online lending, digital banking, and other forms of fintech. The company provides extensive coverage and industry-leading perspectives from a team of staff writers and leading industry expert contributors from around the world.
According to the article, US eCommerce sales driven by the Covid-19 pandemic increased by 50.5% from 2019 to 2021. While Monica asserts that eCommerce growth is “Predicted to slow to 9.4% year over year in 2022, online sales are expected to cross the $1 trillion mark for the first time.”
Monica suggests that this appears to be great news for virtual merchants at face value. But, there are downsides. The resulting uptick in online sales have “been accompanied by a corresponding rise in chargebacks — forced refunds initiated by customers through their financial institutions,” she says.
Monica lamented, “While the major card networks are already implementing strategies to help thwart this growing problem, loopholes in the chargeback system continue to be exploited both directly and indirectly.”
