Chargebacks911® COO Reveals When You Should—And Shouldn't—Dispute a Purchase
Chargebacks911 Co-Founder and COO Monica Eaton recently sat down with Claire Tsosie of Forbes to offer some valuable insights about consumer chargebacks.
As any online merchant knows, chargebacks are a big problem in the contemporary market. Disputes are projected to cost businesses over $30 billion this year alone. Where’s the root of the problem, though? The answer is friendly fraud.
Consumer file between 60-80% of chargebacks without proper justification. In most cases, they’re not intending to hurt anyone; they simply don’t understand how the process works. “The majority of consumers are honest, and they want to do the right thing,” Monica explains in the post. “If they know what happens with a chargeback, and they actually see how [an illegitimate claim] is stealing money from the merchant, they won’t do it.”
Regardless of intent, the result is still the same: merchants lose out on revenue and merchandise, and are forced to pay costly fees.
Consumers need to be educated on the costly impact of chargebacks. This represents a key front in the battle against chargebacks, alongside dispute mitigation, representment, and standardization of industry policy.
