Cb911® COO Monica Eaton Talks Online Dating & Chargebacks Risk
Chargebacks911 COO and Co-Founder Monica Eaton recently had an article published by the Online Dating Association, regarding the link between online dating and chargebacks.
The ODA is the trade association recognized as the voice of the online dating sector. The ODA is supported by members that believe in trust and safety, honesty and clarity, privacy, and who believe in creating a positive experience for users. The ODA’s aim is to promote a technology ecosystem that supports innovation in online dating.
The article states that online dating is now the most popular way to meet a spouse, with one in every four couples meeting through a dating app. About 30% of adults in the US have tried online dating, and more than half of Americans agree that relationships which begin online are just as successful as those that start in person.
This translates to big business. According to data published by Statista, online dating services are expected to have reached 413 million active users worldwide by the end of 2022, generating roughly $3.7 billion in revenue. However, such high earnings potential can translate to increased risk.
“Dating services are often marked as ‘high-risk’ ventures,” Monica warns. “This is because the vertical tends to pose a greater likelihood of chargebacks and disputes.” High-risk merchants will generally be forced to pay higher transaction fees and penalties, and may be required to maintain a merchant account reserve. As she explains, this means “a portion of your revenue will be frozen in case of a hypothetical surge in chargeback issuances.”