Blog | Industry Insights
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Working with Issuing Banks to Access Chargback Dispute Data – Key Factor in Preventing Chargebacks
Chargebacks do not always need to end in dispute While eliminating or preventing chargebacks altogether would cause merchants to turn away good sales, some chargebacks could and should be prevented. While some friendly fraud is intentional, a survey found that 81% of consumers listed convenience as the actual reason for initiating chargebacks. In the same…
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Catch Chargeback Fraud Post-sale Using Chargeback Notification Protocols
Frank Stornello, Chief Marketing and Strategy Officer at Verifi Inc., recommends using a chargeback notification protocol designed to catch direct response chargeback fraud post-sale. Although online customers value security, front-end security measures frustrate them. Having to input too many details in order to purchase may cost more in lost sales than the cost of fraud.…
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Issuer Alerts Improves Communication Between Card Issuers and Merchants to Improve Case Resolution
The Fraud Practice encourages cooperation between card issuers and merchants via issuer alerts or post-billing chargeback notifications. Customers often bypass merchants and directly contact issuing banks. If merchants work with a third party chargeback resolution service, the bank will notify the merchant of impending chargebacks due to suspected fraud or from a cardholder initiated dispute,…
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The Gravity of Friendly Fraud – Verifi
Friendly fraud costs retailers $11.8 billion according to Daily Finance. They also note that it poses a difficult battle for merchants since it can be intentional or accidental. The issue is compounded by the proliferation of identity theft and the subsequent protections banks have put in place to ensure consumer confidence: “With identity theft at…
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A comprehensive strategy for preventing and fighting increased chargeback fraud
Chargeback fraud sure to rise as we move into the busy shopping season and afterward; however, merchants should not forget about other threats lurking online. CNP fraud is on the rise and fraudsters are not being shy about using emerging technology and sales channels as their new stomping ground. Other helpful considerations on dealing with increased chargeback fraud, fraud…
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eCommerce Projections for the 2014 Holiday Season
Multi- and omni-channel commerce offers will be pivotal for merchants in the 2014 holiday shopping season, according to a recent article from Practical Ecommerce. Great strategies to drive growth, especially during the holiday season, are consumer convenience-driven promotions like free shipping, mobile promotions, in-store pickup and video of products. These strategies are usually only possible…
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Guest Perspective: 6 Ways to Cut Chargebacks and Boost Profits
By Frank Stornello, Chief Marketing and Strategy Officer, Verifi To improve your bottom-line results and cut chargebacks e-commerce merchants need to implement a holistic chargeback protection and management solution that not only prevents chargebacks, but also actively reclaims lost dollars to fraudulent chargebacks. Verifi recommends six best practices for successful chargeback protection and management. 1. Improve Internal…
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EMV rollout is almost here – What are the ramifications?
Card-Not-Present (CNP) fraud is expected to double by 2018 in conjunction with the EMV rollout in the US. When EMV was adopted in the UK and Australia, POS credit card fraud quickly declined. However, fraudsters migrated to the online channel causing a spike in CNP fraud. The liability for fraud shifts from issuer to merchant…
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Mobile Channel Risks
The expansion and increased adoption of m-commerce is a contributor to fast-paced online spending growth. M-commerce continues to gain momentum and visibility – more than half of Americans own a smartphone. The percent of web traffic on mobile devices is increasing every year, translating to increased mobile channel risk for merchants. By 2018 Forrester predicts…
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CNP Ecommerce Security and Spending Projections
eMarketer predicts ecommerce spending to increase from $262.3 billion (2013) to $440 billion in 2017 -a growth rate of 13.8 percent. This growth in conjunction with the EMV rollout, will contribute to an expected rise in fraud within the Card-Not-Present (CNP) channel. This growth in ecommerce sales will largely be driven by an increase in…
