Even as retail merchants, ecommerce merchants, and financial institutions have tried to rise to the occasion of providing services to their customers, fraudsters and criminals have been working overtime to take advantage of people who are already hurting because of the down economy.
The increase in ecommerce, as well as restaurant takeout/delivery, has also increased the number of chargebacks, whether malicious fraud, friendly fraud, or merchant error, and it’s creating a lot of problems for merchants of all kinds. A PaymentSource.com article back in March discussed the ways of merchants can use technology can reduce the number of chargebacks they face.
Preventing and reducing chargebacks is always a problem for merchants. Keeping your chargeback-to-transaction ratio below 1% is an ongoing problem as well. And keeping up with the potential problems is enough to keep anyone up at night.