Chargebacks911® COO’s Latest Guest Feature as Part of the Forbes Technology Council
With COVID-19 having a deep impact on the food and beverage industry, many merchants hope that digital channels could present a viable path forward. Chargebacks911 COO Monica Eaton-Cardone, a world-renowned leader in the field of payments and risk management, warns that opening up to new channels will present more risk factors, though.
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Chargebacks were once a rarity in the food and beverage space. But, as digital channels expanded, they quickly became a problem for businesses.
“In our 2018 State of Chargebacks report, we found 28% of merchants in the food and beverage space reported having a chargeback rate between 0.5% to 1% of total transactions,” Monica notes. “Overall, 1 in 10 respondents had a chargeback rate in excess of 1% of transactions. While this may not sound like a lot at first, it adds up quickly. This is especially true when compared to just five years earlier when merchants in that industry saw practically zero chargeback issuances.”
There’s no one-size-fits-all solution for these disputes. Monica suggests that the best course of action is for merchants to identify chargebacks by their source, then deploy tailored solutions to address the problem.