Retailers Anticipate 615 Million Chargeback Issuances Over Next 12 Months
Chargebacks911, the industry’s leading source for information and expertise regarding chargebacks, recently shared some fascinating stats and information with our friends at PayKings. As revealed in the post shared on the PayKings blog, the United States is now a global hotspot for fraud, and where we find fraud…we find chargebacks.
PayKings are a leading provider of merchant services for high-risk verticals. Merchants in the dating, neutraceutical, travel, and many more spaces rely on PayKings for B2B, eCommerce, and retail payment processing at reduced rates and fees.
As noted in the piece, the US now has the highest fraud rate in the world, with roughly 1 in 10 transactions flagged as fraud. Unfortunately, not every fraud incident is reported accurately. Due to friendly fraud, the problem could actually be even worse than it seems. “[Friendly fraud incidents] have been increasing at a rapid year-over-year pace for the last decade,” the article notes. “41% of merchants surveyed reported friendly fraud as one of the fastest-growing threat facing their business in 2020.”
Even merchants who are already aware of this issue need to careful going forward. Every business operating in the eCommerce space needs to take steps now to defend themselves, or they may see fraud and chargeback losses in 2021 eat away at more of their revenue than ever.