Chargeback statistics can be more than a little challenging to understand. After all, reliable and accurate information regarding its state is relatively scarce. Moreover, most of the details are often contradictory and can make it much harder to get a good picture. However, we know that an evolving marketplace and changing technology have led to an increase in fraudulent activities perpetrated by scammers. And the global COVID-19 pandemic came along and compounded the problem further.
Luckily, with the help of the top chargeback companies, consumers aren’t entirely helpless and can still recover lost funds. With that said, in this article, we’ll cover some general statistics on chargebacks. If you wish to know more, continue reading below.
Credit card disputes were initially intended to be a last resort to ensure that merchants are protected from abuse and that consumers aren’t victimized by criminal fraud. The eCommerce industry has significantly changed the way in which many of us shop, though, and the process behind chargebacks has been unable to keep up. Furthermore, it’s not only the consumers who are struggling with it, but the merchants too because it’s become a tool for committing fraud instead of preventing it.
But how much of a threat is it? It isn’t easy to say. To obtain a clear view, you would need a lot of input from merchants, financial institutions, and card networks. Unfortunately, most involved parties tend to keep all the information to themselves for security reasons. Moreover, having chargebacks as a problem can be bad for business.
While a more detailed and accurate consensus may not be feasible, the raw figures might offer a few clues on what will happen. According to studies conducted by Juniper Research, many eCommerce merchants are likely to lose twenty billion due to fraudulent activity. This indicates that the rising costs of internet fraud are accelerating at a rapid pace, and this kind of criminal activity is likely to be an ongoing problem for merchants in the years to come.
The reason for this is that fraudsters are very opportunistic. They understand that merchants face many challenges that demand their immediate attention and are eager to capitalize on the opportunity to engage in fraudulent activities and profit from them. Based on the research mentioned above, it appears like they have a chance of achieving success, which will be a problem in the future.
Much like the stats mentioned above, the success rate for chargeback suits isn’t easy to determine. However, based on how successful many of the chargeback companies have been in helping their clients, this means that victims of fraud aren’t helpless. Through the expertise of chargeback experts, they can still recover their money.
Ideally, the best statistic for chargebacks should remain at zero, but then again, it’s not feasible due to the occasional misstep and oversight. However, with the correct chargeback management approach, it’s possible to drive down the issuances, translating to greater revenue for merchants and peace of mind for consumers.