Monica Eaton, Founder and CEO of Chargebacks911®, was invited to weigh in on chargebacks and consumer behavior for the latest episode of the What the FinTech? podcast.
The What the FinTech? podcast is produced in collaboration with FinTech Futures, the leading global provider of independent intelligence and insight for professionals in the fintech sector. They provide daily news, in-depth analysis and expert commentary across a comprehensive range of areas including: fintech, banking, payments, and more.
Monica began by talking about some of the key indicators and trends that need to be watched regarding chargebacks, especially in the lead-up to the holiday season. Refunds, for example, are an important indicator here. “What's the return behavior, and the refund behavior? What's consumer behavior look like?” she asks, pointing out some questions that merchants should ask themselves.
Monica also noted that trends in consumer behavior do not always align with what one might expect, given broader economic conditions. “Now... because the economy isn't as strong as it could be, there's some financial instability, the markets have forecasted a bit of a downturn, and for that to continue, interestingly, what we see in terms of chargebacks and spending, doesn't necessarily align [with rational expectations],” she says.
“There are still significant amounts of spending, lots of credit cards being used, people overspending, overbuying. And, in terms of return fraud, or even returning merchandise, a recent study from Salesforce found that 13% of all merchandise was returned from Black Friday. This year, based on what we're seeing, it's probably going to be around 30%.”