Merchants Need to Gird for Coronavirus-Related Chargebacks

Monica’s Latest Thinkpiece for PaymentsSource

The coronavirus outbreak is expected to have extensive repercussions beyond the immediate medical fallout. In her latest thinkpiece for PaymentsSource, Chargebacks911® COO Monica Eaton-Cardone says that the outbreak will likely lead to a surge in chargeback activity for online merchants.

PaymentsSource offers frontline coverage and analysis for payments professionals. They provide “critical insight and thought leadership on the fast-moving global payments sector,” attracting an audience more than 16,000 followers representing merchants, acquirers, issuers, gateways, and PSPs.

Monica predicts a kind of coronavirus “ripple effect.” As consumer confidence wavers while businesses’ capacity is limited, more and more buyers could end up filing disputes to recover their funds.

“An unreliable supply chain translates to limited inventory and canceled orders, limiting earning potential, and potentially angering otherwise loyal customers,” she says. “While some may understand, given the circumstances, others will likely be less forgiving.”

Not only that, bad actors may also try to take advantage of the situation by increasing their fraud activities. As Monica explains, merchants need to remain vigilant and adopt chargeback prevention best practices to protect themselves.

“Merchants need to be ready for the increased chargeback risk. More chargebacks mean lost revenue, additional fees and fines, and poor customer satisfaction. If the situation gets out of hand, merchants could face the possible loss of card processing privileges altogether.”