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Today, illegitimate credit card chargebacks, known as “friendly fraud," cost sellers a staggering $125 billion per year.
Two-thirds of US shoppers and 44 percent of British shoppers have filed chargebacks in the past 12 months, and many have filed multiple chargebacks—part of a global trend.
Every year, merchants experience a sudden influx of chargebacks. From the beginning of January and almost into April, companies will get the ‘holiday hangover’ in which dispute volumes can rise by as much as 40 percent.
Chargebacks are an inescapable part of e-commerce. The high sales (and increased fraud) of November and December translate into a significant volume of chargebacks in January and February.
The growing move to faster payment options for retailers may improve merchants’ cash flow, but increased transaction speed brings along with it the increased...