Chargebacks911: Rising payment fraud in UK overwhelming merchants with misunderstood chargebacks

Europe’s first chargeback remediation specialist states that amid
rising fraud levels, merchants are struggling to understand rising
levels of chargeback fraud in the UK

DUBLIN–(BUSINESS WIRE)–Europe’s first and only chargeback remediation specialist Chargebacks911,
owned by Global
Risk Technologies
, is urging merchants
to understand and use reason codes in the light of newly released fraud
statistics.

The figures from Financial
Fraud Action UK
reveal that financial fraud losses grew by 26% in
2015. The research further highlights the growth in payment card fraud,
up 18% over the same period to £567.5m and the value of card-not-present
(CNP) fraud, including ecommerce, which was up 20% to £398.2m.

Monica Eaton-Cardone, co-founder, comments: “These are staggering
figures, illustrating a worrying upward trend in online fraud. The
adoption of EMV in the US is pushing more fraudsters online, while
complex new technologies have made it difficult for merchants to offer
omnichannel experiences while remaining secure. Internationally, fraud
on UK cards from overseas has risen 25% in the last year, according to
FFA, and it’s clear merchants are struggling.”

Chargebacks911 has seen friendly fraud rise 150% since 2009, while
chargebacks grew 55% in the same period. Part of the cost problem for
merchants is that when they are hit by fraud they do not fully
understand the reason codes reported back to them by the issuing bank.

Each card network, such as MasterCard or Visa, has its own unique set of
chargeback reason codes, informing merchants of a host of reasons why
they may have been hit with a chargeback, including:

  • Merchandise or services not received
  • Cancelled recurring transactions
  • Counterfeit transactions
  • Goods or services defective or not as described

Reason codes were first created as a valuable tool to help merchants
understand chargeback management and analysis, but with the advent of
friendly fraud, they have become less insightful. Payment networks often
address consumer grievances differently, so Chargebacks911 prefers to
categorise chargebacks for merchants by breaking it down to three main
causes:

  • Merchant error
  • Criminal fraud
  • Friendly fraud

Monica Eaton-Cardone concludes: “Once a merchant understands the
true reasons behind chargebacks against them, they can put in place the
necessary steps to successfully dispute fraudulent claims, and best
practice processes to minimise the risk of them happening again. This is
what we fight for every day for our clients and it has a demonstrable
impact on their business performance.”

About Chargebacks911

Chargebacks911, a company of Global Risk Technologies, focuses on
chargeback mitigation and risk management. It specialises in servicing
Internet merchants and acquiring banks, offering dispute response
solutions and deep analytics. Chargebacks911 works with its clients to
help them keep dispute rates down and retain their ability to accept
credit cards. For more information, visit www.chargebacks911.com and www.globalrisktechnologies.com

Contacts

SkyParlour for Chargebacks911
Rob Baker
GRT@skyparlour.com
+44
(0) 844 2939 764