Chargebacks: Losing Your Merchant Account Services?
Fraud of all types is on the rise all around the globe. Chargebacks are a serious problem for eCommerce merchants. Are you dealing with higher rates of chargebacks? Do you need a high risk merchant account for your online business? Just read this article to get answers to your questions.
Growing Fraud and Chargebacks
eCommerce chargebacks are at their highest levels all over the world. This is mainly caused by friendly fraud. How? Customers make and receive an online purchase. Then, they issue a chargeback with their credit card issuer and claim they haven’t received it.
The cases of friendly fraud have skyrocketed across the globe. By the way, friendly fraud accounts for the majority of cases of chargebacks. In fact, roughly 4 out of 5 chargebacks filed have no proper justification.
According to recent research, because of fraudulent chargebacks, merchants are expected to lose nearly $25 billion by 2020. Based on the data presented by Javelin at MRC Vegas 2018, chargebacks and related costs accounted for almost $31 billion in 2017, nearly doubling the total losses in 2013.
Are you a merchant trying to fight fraud and reduce chargebacks successfully? Look for a reputable credit card processing company that can provide you with reliable chargeback prevention solutions. With a respectable processor, you can easily get approved for merchant services, including a high risk merchant account for your online business.
Consumer chargeback fraud is commonly referred to as friendly fraud. It’s forecast to represent the driving force behind growing losses in the field. By the way, Visa has recently introduced its new Visa Claims Resolution (VCR) process. The new rules will take effect on April 15, 2018. They’re expected to bring about important changes. Specifically, the time merchants spend on dispute resolution will go from 45 days to 30 days, eventually 20.
In fact, chargebacks are largely preventable. If you apply appropriate precautions, you can reduce chargebacks by as much as 40%. Beyond that, the right strategy can help you dispute the majority of chargebacks filed.
As you see, it’s critical to work with a merchant services provider that knows the devastating effect chargebacks can have on an eCommerce business. Turn to the true professional in the field and grow your business.
Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants, and offering a high risk merchant account. His passions include producing music, and traveling.