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Switch to Online Retail has led to Increased Chargebacks: Here’s How to Prevent it

Monica Eaton-Cardone’s New Guest Feature for BRC

The online retail environment is seeing a surge in buying activity, but it’s come hand-in-hand with a surge in chargeback issuances. In a new guest post for the British Retail Consortium, Chargebacks911® COO Monica Eaton-Cardone suggests that these chargeback can—and should—be prevented.

The British Retail Consortium (BRC) is a leading trade organization for retailers operating in the UK and European markets. The BRC’s membership comprises over 5,000 businesses delivering £180bn of retail sales and employing over one and half million employees.

As Monica explains, we’re seeing an increase in fraudulent activities like account takeover. However, many of these chargebacks are actually illegitimate cases of friendly fraud, which have doubled since the beginning of 2020. “This is because it is now easier to commit than ever before,” she says. “Consumers are cloaked by anonymity when shopping online, and merchants aren’t always present at the point of exchange to confirm if goods arrived safely.”

She goes on to explain that there are three key actions merchants can take to stop these disputes: prevent, identify, and adapt. Each behavior plays a role in helping retailers in the UK and abroad to protect their bottom lines by preventing and fighting back against chargebacks.

“Retailers need to be agile and adapt if they are to crack down on the threat that chargebacks pose. Part of this means improving data management and responsiveness once a dispute is raised.”