Chargebacks continue to be an ever-growing problem for businesses. According to a new report – 2018 Identity Fraud Study – by Calif.-based research firm Javelin Strategy & Research, online fraud is now 81% more likely than fraud at the point of sale. The study also discovered that 16.7 million people have had their identities stolen and fraudulently used last year; this is the most since the firm started tracking the data in 2003.
The firm describes 2017 as “a runaway year for fraudsters”, and the future does not look more secure. Al Pascual, senior vice president research director and head of fraud and security for Javelin Strategy & Research, explains that the amount of valid information fraudsters have on consumers means their attacks will continue to be more and more complex.
What are Chargebacks?
Essentially, a chargeback is the successful reversal of a payment after a customer disputes an item on his or her account transactions report. As a small business owner, chargebacks are not only frustrating, but they are also a threat to your livelihood. A recent study by ClearSale revealed the most common reasons customers file a chargeback:
- 4% file because the product did not meet the website description
- 4% file because the product did not meet the consumer’s expectations
- 15% file because the retailer shipped the wrong product
- 26% file because the product never reached the customer
- 30% file because the purchase was made with a stolen credit card
How do Chargebacks Affect Your Business?
In some …