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How Holiday Sales Translate into Post-Holiday Chargebacks

Small Business Bonfire Hosts New Guest Feature by Chargebacks911® COO

The holidays are a great time for business. Sales are up and revenue is growing…but without proper precautions, those sales could quickly become losses, as Monica Eaton-Cardone explains in a new feature for Small Business Bonfire.

Small Business Bonfire is a social and educational community for entrepreneurs. The site provides actionable tips and tools from the experts through a small business blog, a weekly newsletter, and online discussions.

Chargebacks are a fast-growing problem for online sellers. As Monica points out, businesses lost $31 billion to chargebacks in 2017, most of which were illegitimate cases of friendly fraud. It’s the weeks after the holidays, though, where the chargeback pain is the most intense.

“The average consumer will return roughly 15% of all the goods they purchase online during the holidays,” Monica says. “Some items don’t fit, or are the wrong size or color…either way, the post-holiday returns are coming. If you’re unable to meet consumers’ expectations, those returns could devolve into chargebacks.”

Chargebacks typically operate on a cycle. So, while you may enjoy a surge in purchases coming in November and December, you can expect a resulting uptick in chargebacks come January and February.

“The earlier you can start working to prevent disputes, the better positioned you’ll be. Plus, making the investment in a comprehensive chargeback management strategy—one that works alongside your existing fraud technologies—will continue paying-off long after the holidays are done. Chargebacks are, after all, a year-round problem.”