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$31 Billion Chargeback Problem Facing Consumers, Merchants & Issuing Banks
LOS ANGELES, May 14, 2018 (GLOBE NEWSWIRE) -- Today, Verifi issued a new report that highlights the urgent need for collaboration between merchants, issuing banks and consumers. This in-depth analysis brings to focus the alarming scope and lasting effects that disputes and chargebacks present throughout the card payments ecosystem.
Verifi commissioned the report with Javelin Strategy & Research to examine the root causes of disputes, exploring how consumer behavior changes based on experiences in the dispute process and the immediate, lasting and significant impact on merchants and issuers. The report found that consumer disputes and chargebacks created $31 billion in financial losses in 2017, with merchants bearing nearly $19 billion of the costs and issuing banks incurring the remaining $12 billion.
Entitled “The Chargeback Triangle,” the 36-page report provides a comprehensive view of the present chargeback lifecycle, as well as a detailed breakdown of the significant chargeback costs and negative impacts to issuers and merchants. More important, the report helps reveal opportunities to streamline the dispute process, and – in some cases – how to avoid chargebacks altogether.
Some key findings include:
Matthew Katz, CEO at Verifi, stated, “Some of the findings can be hard to accept, but the report validates the innovation and services we provide are consistent with the need to help reduce the high and unnecessary costs that disputes and chargebacks create for all parties in the payments chain. The report clearly indicates that collaboration between issuers, merchants and consumers is critical to resolve disputes effectively and avoid the direct and extended costs chargebacks and consumer-initiated “friendly fraud” cause for merchant and issuers alike. In the end, the consumer pays the price in the form of higher purchase prices as well.”
Click here to obtain the research report, “The Chargeback Triangle.”
Founded in 2005, Verifi is an award-winning provider of end-to-end payment protection and risk management solutions. Verifi’s patented collaboration platform enables the sharing of near real-time data between cardholders, merchants, and issuers to resolve disputes, save sales, prevent fraud and stop chargebacks. Verifi’s services also help merchants fight and recover profits lost from unwarranted chargebacks, process payments securely, and optimize billings. Trusted by a wide range of businesses, from emerging companies to the Fortune 500, Verifi is headquartered in Los Angeles and serves thousands of accounts globally. For more information, visit: verifi.com.
Contact: Kevin Mercuri