Matthew Katz recently wrote an article discussing “How the $40 Billion Chargeback Problem Impacts the Entire Payments Ecosystem”.
The $40 Billion chargeback problem[1] impacts the entire payments ecosystem.
- Merchants are hit with fines and fees, extra labor costs, loss of goods/services and even the potential loss of processing privileges.
- Issuers assume additional customer support costs as managing cardholder disputes costs time and money.[2]
- Consumers even feel the pain with increased fees, more friction in the sales process due to increased fraud prevention measures and, ultimately, increased prices.
How to fix the problem? The answer: improve merchant/issuer collaboration to preserve the customer experience and foster healthier bottom lines.
[1] Aite Group Research, 2015.
[2] https://www.aciworldwide.com/-/media/files/collateral/automating-your-dispute-management-process-tl-a4-5234-1213.pdf