The Chargeback Triangle
The Payments Industry’s $31 Billion Problem
Commissioned by Verifi, this groundbreaking research study provides a detailed view of the $31 billion broken chargeback process that impacts consumers, merchants, and issuers.
The Chargeback Triangle examines the experiences and perspectives of consumers, merchants, and issuers as they relate to payment and credit card chargebacks. This all-new research provides insights on the need for a coordinated effort among these three parties in payments to reduce disputes, communicate chargeback rules and rights for consumers, and protect against the damaging costs associated with them.
Key findings include:
- Consumers bypass merchants, going to issuers with fraud-related disputes up to 76% of the time
- 63% of customers decreased merchant patronage due to associated chargebacks
- Merchants are burdened with two-thirds of total costs related to chargebacks
- 60% of merchant chargeback costs are in management expenses
- Combined issuer liability for payment card chargebacks accounted for more than $7B in 2017 – over 60% of total issuer chargeback costs
- For every $1 disputed, merchants AND issuers incur $1.50 in more costs
In light of these challenges and more, merchants and issuers must still uphold the priority of instilling customer confidence and loyalty, while minimizing the risk of “friendly fraud” – disputes fraudulently filed by the individual who made the purchase.
Fill out the form to get the full study results with analysis and insights.
Or call us today at (323) 655-5789 to see how Verifi can help your company fight and stop chargebacks.