To paraphrase the main points of the 2022 Chargeback Field Report, merchants have experienced a 28% increase in friendly fraud chargebacks in the last three years. This is due in no small part to the pandemic, inflation, and lingering supply-chain issues leftover from 2020. This record-setting rise in fraud bears potentially dire consequences for global commerce.
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According to Card Not Present, the 2022 Field Report is a comprehensive examination of the state of chargeback management for digital merchants. The average chargeback ratio found among respondents of the survey, expressed as the percentage of total transactions that result in a chargeback, varies with both the size of the business and the overall number of chargebacks they receive.
The report also delves into chargeback win rates and why some merchants might be overestimating how much they win. Merchants polled in the report re-present an average of 54% of friendly fraud chargebacks. But many don’t follow through and track chargebacks they may have won, but were challenged a second time by the customer.
“Survey respondents with the calculated net win rate of 10.2% were asked the percentage of claims initially decided in their favor that were later charged back a second time by the bank,” the report’s authors wrote. “On average, participants said this equaled 13% of their representment wins.”