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...]
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Consumer Communication Gaps
In today’s omnichannel market environment, when a consumer completes a digital transaction and has a problem with the purchase she typically doesn’t know whom to contact. Since she has flagged the transaction on her billing statement, her first choice of contact is the issuer rather than the merchant. The reason for this is quite clear. The card-not-present (CNP) business model doesn’t require direct interaction between the merchant and the … [Read more...]
The Chargeback Triangle
Chargebacks are a problem for everyone involved in the dispute process – merchants, consumers, and issuers. The trickle-down effects of chargebacks extend well beyond a lost or refunded sale, with disgruntled customers and seemingly endless communication problems, increased operational expenses and reduced profits for merchants and issuers. In 2017, chargebacks amounted to a $31 billion problem. This number only sits on the surface of larger, … [Read more...]
