If you haven’t taken significant time to strategize against chargebacks, your business could stand to lose a ton of money. Although many retailers have caught up to the fact that they need to fight against chargebacks, a lot more must be done in the eCommerce industry. According to Chargebacks 911, chargebacks, chargeback fraud, and associated expenses are costing the eCommerce industry over $40 billion a year. Chargebacks 911 and Kount, a leading security company that we have partnered with to enhance the security of our payment gateway, developed a report called
“The State of Chargebacks, 2018 Report” to enlighten those in the industry about just how much of a problem a chargeback can be. According to the report, the following statistics should make retailers take a second look at their own chargeback prevention strategy:
- While 82% of organizations doing business within the CNP payment space dispute chargebacks, only 32% of them were successful more than 45% of the time.
- Nearly 23% of organizations reported chargeback rates of more than 1%.
- Only 45% of organizations use a third-party provider to prevent fraud, and only 21% use a third-party for presentment to dispute charges.
- Businesses that primarily do B2B transactions were the most likely to have win rates higher than 60%, but that percentage of businesses was only a meager 26%.
