Company’s New Feature for Payments Cards & Mobile
Chargebacks911 COO Monica Eaton-Cardone commented on the threat posed by chargebacks in a post-COVID marketplace in a new feature for Payments Cards & Mobile.
Payments Cards & Mobile is a market intelligence hub for global payments news, research and consulting. Leveraging 15 years of data across 43 markets, their award-winning resources and expertise provide impartial, up to date analysis on issues shaping the future of payments.
The COVID-19 crisis has disrupted global markets in a profound way. We’re still just uncovering the long-lasting effects; unsurprisingly, part of the blowback has been a significant uptick in chargeback issuances. “In the past few weeks, we’ve tracked an increase in overall chargebacks of about 23%,” Monica explains. “Some industries are experiencing more chargeback trouble than others.”
Merchants in the most heavily-impacted verticals like airlines could see chargeback rates multiple several times before things get back to a semblance of normal. Beyond service interruptions, many consumers are finding themselves under unexpected financial strain. As a result, some see friendly fraud as a way to try and recover some of their money.
“Considering the rate of redundancies, furloughed staff and the impact on an individual’s income, the opportunity to utilize chargebacks to shrink credit card bills or increase bank balance has not gone unnoticed.”
Merchants need to be ready for what’s coming. That means taking a proactive approach to fraud and chargeback management.