Industry Insights

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...]

Chargebacks: Getting to the Root of the Problem

The transaction dispute process is broken. Introduced over 40 years ago, it has not evolved to keep pace with advances in payments and technology. This has created an environment that allows fraudsters to match or exceed technological advances in chargeback fraud. What has also developed is an increase in confusion experienced by consumers who do not know where to turn when they have a problem with their transaction. This is due in part to … [Read more...]

Internet of Things: More Payment Channels, More Need for Protection

A refrigerator that knows when there isn’t enough milk for breakfast. Lightbulbs that react to motion and change color based on a programmed schedule. Smart speakers that know when it’s time to restock the dog food and buy more paper towels…. The connected life is here to stay. What started with relatively simple technology to power smart phones and smart watches has quickly evolved into the exciting and challenging domain of the Internet of … [Read more...]

Protecting Merchant Patronage

There is no question that the internet has revolutionized commerce. Purchases happen in an instant with a few clicks, swipes, and taps – and a brand’s success can hinge on a merchant’s ability to deliver a smooth transaction process to their unforgiving consumers. But meeting these expectations has had unintended consequences – a broken chargeback system that cost the industry $31 billion in 2017, $19 billion of which was absorbed by … [Read more...]