When the Coronavirus Fades, Chargebacks will Still be a Threat

Monica Eaton-Cardone’s New Guest Feature for PaymentsSource

The COVID-19 crisis has impacted global business in a profound way. Some effects will be temporary, while others are permanent changes to the status quo. In her new guest feature for PaymentsSource, Chargebacks911® COO Monica Eaton-Cardone says that merchants will see chargebacks spike, at least into the mid-term.

PaymentsSource offers frontline coverage and analysis for payments professionals. They provide “critical insight and thought leadership on the fast-moving global payments sector,” attracting an audience more than 16,000 followers representing merchants, acquirers, issuers, gateways, and PSPs.

“Many new threats and business risks have developed in the last few weeks as a direct result of the shift in consumer behavior,” Monica explains. “For instance, we’ve seen chargebacks based on service complaints overtake friendly fraud chargebacks, which typically represent between 60% to 80% of all issuances. Many of these chargebacks are being submitted by consumers who are new to e-commerce, and may be impatient with crisis-related delays.”

This surge in chargeback activity will cause significant problems for businesses. In response, merchants need to be strict about adhering to best practices. These include clear customer communications, mitigating fraud risk, and always watching for new opportunities. These practices will continue to pay dividends, even after the COVID-19 crisis passes.