Industry Insights

Data-Sharing Helps Merchants and Issuers Stop Chargebacks

In more than 8 in 10 cases, when consumers contact the merchant first to dispute a charge, it is resolved before it becomes a chargeback. This finding from the recent Javelin Strategy & Research report, "The Chargeback Triangle," should be encouraging to any merchant that deals with chargebacks. But compare with another finding from that same report: customers bypassed merchants and went directly to their issuer in 76% of cases. Invariably, … [Read more...]

Winning the Race Against Transaction Disputes

The pace at which merchants must react and respond to transaction disputes is staggering. Due to the outdated dispute and chargeback process, it’s a race against a ticking clock to launch a successful representment case. The existing transaction dispute process lacks cohesion and collaboration, creating a never-ending cycle of unnecessary chargebacks, lost revenue, and increasing liability costs. It’s tempting to give in and accept the … [Read more...]

Information Exchange: Revising the Chargeback Process

In 1974, the Fair Credit Billing Act was enacted to protect consumers from prejudicial or unfair billing practices. Over 40 years later, this act still has a profound impact on how merchants and issuers manage chargeback process. History reminds us that the Fair Credit Billing Act was created to provide credit card users with protection from credit card fraud and theft. Fears over credit card fraud were so high that the federal government … [Read more...]

How to Unlock the Chargeback Solution

The merchant-customer relationship appears simple in theory. Provide your best service and products, and invite them to come back for more. However, even the simplest of relationships can become complex and fraught with confusion, often materializing as friendly fraud, disputes, and chargebacks, resulting in loss of customers and future business. Add the issuer into the mix and the merchant and customer relationship can devolve into a … [Read more...]

Transaction Disputes and the Issuing Bank Connection

When assessing the damages that result from transaction disputes, the focus typically is on merchants. After all, in 2017, they absorbed $19 billion in chargeback costs. However, issuers have been similarly affected, having shouldered $12 billion of the burden. Issuers face a losing battle balancing the demands placed on them by federal regulators, credit card associations, merchants, and cardholders. They must somehow manage to satisfy the … [Read more...]

The Key to Chargeback Collaboration

The payments ecosystem has evolved significantly over recent years. The rise in m-commerce, in-app purchases, same-day delivery, and subscription options has created an impersonal and disconnected relationship between consumers and merchants. This has had a two-fold impact on disputed transactions: consumers often don’t know who to contact when they have transaction disputes or inquiries, and it has become easier for consumers to commit friendly … [Read more...]

What Merchants Have, Issuers Need

No one wants to deal with a chargeback or the stress of trying to determine if a dispute is valid or another instance of friendly fraud. So, why do so many merchants and issuers spend endless hours, resources, and dollars independently fighting chargebacks? It’s usually their only option. Merchants and issuers must collaborate and fight the problem together to drive down chargeback costs. The Need for Merchant-Issuer Collaboration In the … [Read more...]

Chargebacks: The Issuer’s Perspective

The transaction dispute problem is not slowing down. In fact, industry experts predict that chargebacks and transaction disputes will get worse before they get better. This is exactly why issuers must be proactive to avoid the costs, resource drain, and the possible increase in customer attrition caused by unnecessary and fraudulent chargeback disputes. Due to the increasing adoption of m-commerce and e-commerce purchasing, connection … [Read more...]

Safeguard Customer Data

No one wants to hear about the latest data breach and where it hit. Consumers get very nervous when they’re reminded that their personal data is not secure. The last thing a merchant wants is to be associated with a data breach, and issuers get extremely uncomfortable about what the threat to their deep databases could mean to their customer security and loyalty. Data security plays an integral role in e-commerce. It should be top-of-mind for … [Read more...]

Chargebacks: The Merchant’s Perspective

Chargebacks shouldn’t have to be part of the of the cost of doing business, but for many merchants this is their reality. The payments industry uptick in chargebacks and their associated costs have made it very challenging for merchants to stay true on their path of success. Because merchants absorb the majority of costs resulting from chargebacks and fraud, it is in their best interest to take action. This means deploying advanced payment … [Read more...]