The Shocking True Cost of Chargebacks

Originally posted by CardNotPresent.com.

How much would you guess businesses lost to chargebacks in 2017? $10 billion? Maybe even $20 billion? Generous guesses—but not generous enough. Or, maybe you keep up with statistics and you read that the total cost of chargebacks came to $31 billion in a single year. Sorry, you’re still not even close.

Uncovering the True Cost of Chargebacks
To find out what chargebacks are really costing merchants, we cannot simply look at merchants or the cost of merchandise lost. Chargebacks have a dramatic “bottom-line” impact that cuts across the entire payments ecosystem. They sap sales revenue and merchandise, they saddle businesses with a host of additional fees and administrative costs and they threaten critical relationships between merchants and institutions.

Read the full article here.

Fed Report Pegs CNP Fraud as Retailers’ Biggest Concern

Originally posted by CardNotPresent.com.

New research from the Minneapolis Fed indicates that retailers are more concerned with fraud in their online channels than any other kind of fraud. Across nearly every size business, Fighting Fraud in the E-Commerce Channel: A Merchant Study found that not only was CNP fraud considered their greatest threat, but half worry about their systems’ abilities to handle fraud as the nature of data breaches changes and attacks at the online account level increase. More than three-quarters of those polled expect increased attacks on their e-commerce channels in the next 6 to 12 months.

Read the full article here.

Chargebacks 101: What They Are & Why They Matter

Originally posted by ChargebackGurus.com.

Chargebacks are a growing concern for modern merchants. And at the rate they’re increasing, it’s no wonder why.

From 2016 to 2017, chargebacks jumped 179 percent, costing merchant’s 1.9 percent of their total annual revenue. Add in the potential threat chargebacks pose to your reputation and merchant accounts, and you’ve got a pretty serious problem on your hands – no matter what line of business you’re in.

What is a Chargeback?

Put simply, a chargeback is when a customer is credited back for a card transaction.

It occurs when the customer contacts their bank, disputes a charge on their bill or statement, and requests a refund.

Typically, consumers file chargeback disputes when they don’t recognize a transaction or are somehow dissatisfied with their purchase or the buying experience. In some cases, they may simply be trying to get their product or service for free.

Read the full article here.

The History of Ecommerce: What The Past Says About Tomorrow’s Retail Challenges

Originally posted to BigCommerce by Kaleigh Moore.

When it comes to ecommerce, a word that first comes to mind is growth.

Ecommerce expert Gary Hoover’s research shows that just in the last 14 years, the growth of ecommerce companies has skyrocketed across the board.

And some merchandise lines (like clothing and beauty products in particular) have achieved a remarkable 25% average CGR between 2000-2014.

This trend isn’t slowing down, either.

In fact, growth projections estimate that by 2022, ecommerce revenues will exceed $638 billion in the U.S. alone. Read the full article here.

3 Solutions for Ecommerce Merchants Fighting Fraud

Article written by NoFraud for Entrepreneur.

One of the lesser known challenges of running an ecommerce store is preventing fraud chargebacks. When a consumer doesn’t recognize a charge on their credit card statement they will dispute the charge with their credit card company, which will result in a fraud chargeback to the ecommerce store owner. The full transaction amount is deducted from their merchant account as well as a chargeback fee typically between $15 and $25.

Stolen credit card numbers are available on the black market for mere pennies. Businesses that sell online must stay vigilant to ensure the credit card used to make a transaction belongs to the customer receiving the goods to protect their reputation and avoid costly chargebacks. Read the article here.

Nearly 28% of consumers have been a victim of e-commerce-related fraud

Article posted by Katie Evans for Internet Retailer.

U.S. e-commerce is projected to grow nearly 16% in the third quarter, but consumers still have hesitations regarding the safety of shopping online, according to an exclusive Internet Retailer survey of 2,000 U.S. consumers conducted by Bizrate Insights.

For example, 40% of consumers said they did not complete a purchase on the web because of fears of fraud or concerns about the safety of their personal information. Additionally, 70% are concerned about fraud or their personal information when shopping online. Read the full article here.

Fraud Costs Rise for Merchants, Especially on the International E-Commerce Side

Original article was written by Jim Daly for DigitalTransactions.net

Merchants’ actual fraud costs are up for the third year in a row and their total fraud-related expenses also are rising, according to the latest True Cost of Fraud study from LexisNexis Risk Solutions.

Fraud as a percentage of the revenues reported by the 653 retailer risk-control executives surveyed for the 2017 study was 1.58%, up 7.5% from 1.47% in 2016. As recently as 2013, fraud was only 0.51% of revenues before increasing to 0.68% the following year and then taking a big jump to 1.32% in 2015. (more…)

Stop the Intrusion and Keep your Revenue: How to Prevent Online Fraud in Your Business

Contribution from freelance writer Jenny Holt

According to the Association of Certified Fraud Examiners, a typical organization loses 5% of revenue every year to fraud. For businesses, online fraud typically manifests itself in the form of credit card fraud, identity theft, mobile phone transaction fraud, international purchasing fraud, phishing scams, and downloaded malware that collects credit card information from customers. To protect your business and customers from this very prevalent and increasing threat, take the following steps into consideration. (more…)

A vaping e-retailer snuffs out chargebacks

Written by James Melton for Internet Retailer.

For roughly $700 per month, the owner of VapeSociety.com and VapeMood.com eliminated chargebacks of up to $5,000 per month.

Cesar Campos thought chargebacks for fraudulent credit card purchases of $3,000-$5,000 per month were going to be a regular cost of doing business.

Campos, marketing director of Campos Inc. Investments, which operates VapeSociety.com, the affiliated VapeMood.com, and other e-commerce operations, says the 5-year-old business had two employees dedicated to tracking the IP addresses of fraudulent purchasers and verifying suspicious-looking transactions. The result was a slowed-down fulfillment process and not much success in stopping the chargebacks. (more…)