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New Threats—and Opportunities—for Retailers in Chargeback Management

Chargebacks911® COO Monica Eaton-Cardone’s Latest Guest Feature for IMRG

Monica Eaton-Cardone of Chargebacks911, one of the world’s foremost chargeback experts, recently provided some fascinating insights in a new feature for the IMRG blog.

IMRG is the UK’s leading online retail association. They offer resources for online retailers and help members to understand and improve their online retail performance through a program of performance benchmarking, data analysis, insight, best practice sharing, and events. IMRG’s membership community is comprised of businesses of all sizes, as well as a wide range of solution providers to the industry.

In our recently-published 2021 Chargeback Field Report, we found that Covid-19 had a profound impact on the chargeback landscape. There’s no real surprise there; however, the report did also yield some surprising results.

“Although merchants in the study said they submitted a representment in 43% of chargeback cases, their rate of success was comparatively low,” Monica says. “The average merchant’s net recovery rate, or the rate of successful representment as a share of total chargebacks issued, sat at just 12%.”

Monica suggests that merchants could see substantial revenue recovery by reallocating resources to where they could be more effectively used.

“Merchants who used alerts credited them with a 19% reduction in chargebacks, along with a 17% reduction owed to card scheme inquiries. These offerings do not address the core issues that cause chargebacks, but they can be valuable stop-gap measures to mitigate short-term risk.”