Chargebacks911® COO’s New Guest Feature for Digital Transactions
Monica Eaton, one of the world’s leading experts on the topic of chargebacks and fraud, offered her insights on what we can expect for the future of chargebacks in a new post for Digital Transactions.
Digital Transactions is a news outlet dedicated to serving the informational and analytical needs of the market as it undergoes fundamental transformation due to shifts in technology and consumer behavior. Since 2003, the site has provided critical insight for the day-to-day strategic concerns of businesses operating in the digital market.
Chargebacks tied specifically to friendly fraud were projected to cost businesses upwards of $50 billion in 2020. Of course, considering the way in which 2020 panned out, the real total is likely to be even higher.
As Monica points out, there are four primary trends influencing the problem, including customer expectations, inconsistencies in the industry, mobile banking, and the response by card networks. “These four factors carry diverse ramifications for the market,” she says. “For instance, roughly $118 billion in eCommerce transactions are declined each year, according to Javelin Strategy & Research. Most of these rejected purchases are false positives, meaning the merchant unnecessarily rejected the purchase in hopes of avoiding a chargeback.”
Monica also points out that there are practices merchants can employ to mitigate their risk. In the piece, she suggests a number of tactics that might help businesses protect their bottom line.
