The Payments Industry’s $31 Billion Problem
Commissioned by Verifi, this groundbreaking research study provides a detailed view of the $31 billion chargeback problem that impacts consumers, merchants, and issuers.
The Chargeback Triangle examines the experiences and perspectives of consumers, merchants, and issuers as they relate to chargebacks. This all-new research provides insights on the need for a coordinated effort among these three parties in payments to reduce disputes and 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.