Chargebacks911 was recently cited in a Crowdfund Insider article addressing a less visible threat to merchants: false declines. The piece argues that overly aggressive fraud filters are costing businesses more in lost revenue and customer trust than many realize.
Crowdfund Insider is a leading publication focused on the intersection of fintech, crowdfunding, payments, and innovation. It covers how changes in regulation, technology, and consumer behavior affect merchants, platforms, and investors across financial ecosystems.
“Chargebacks911’s analysis shows that these systems can ‘mistakenly block 75 times more legitimate revenue than the fraud they stop,’” the article reports.
Reporter Omar Faridi contextualizes these findings by noting that, as merchants lean heavily into automation and AI-based fraud screening, the tradeoff between cutting fraud and preserving sales becomes more acute. According to the feature, 80% of cardholders say that being falsely declined is not just frustrating, but embarrassing, and many will simply abandon the merchant altogether.
Donald Kossmann, CTO at Chargebacks911, expands on the implications: “Every false decline is a failure of design. I’ve built these systems myself, I know how easy it is to focus too much on catching fraud and forget the cost of blocking the wrong people. Merchants celebrate when a filter stops fraud, but if that same system rejects thousands of good customers, what did you really save?”
