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chargebacks

CHARGEBACKS MONTH: What can we learn from 2024 to help minimise losses?
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Chargeback management has become a critical concern for retail brands. The practice – where customers dispute transactions and seek refunds through their banks – can significantly impact revenue and operational efficiency. As technology advances and fraud becomes more sophisticated, e-commerce and payment professionals need to be aware of the latest trends in solutions to protect their sales and enhance customer trust. Here’s a look at the key developments in 2024….

1. AI-Driven Chargeback Management

Artificial Intelligence (AI) is transforming how businesses manage and prevent chargebacks. AI-powered systems can analyse vast amounts of transaction data in real-time to identify patterns and detect fraudulent activities before they escalate into chargebacks. By automating the chargeback process, these systems help reduce human error, improve response times, and increase the likelihood of successfully disputing illegitimate claims.

Machine Learning (ML) algorithms continuously improve fraud detection, providing more accurate predictions of high-risk transactions. As a result, senior payment professionals can leverage AI to better understand customer behaviors and enhance fraud prevention strategies, leading to fewer chargebacks and better control over revenue loss.

2. Fraud Prevention and Authentication

As online fraud becomes more sophisticated, the rise of friendly fraud—where customers make false claims about non-receipt of goods or unauthorized purchases—has posed a growing challenge for retailers. To combat this, advanced fraud prevention techniques are becoming integral to chargeback solutions.

The adoption of multi-factor authentication (MFA) and 3D Secure 2.0 protocols helps strengthen transaction security, adding layers of protection during the checkout process. Additionally, tokenization and biometric authentication are being used to prevent unauthorized transactions and reduce the risk of data breaches. Implementing these tools enhances trust with customers and significantly reduces the volume of chargebacks due to fraud.

3. Prevention Through Real-Time Dispute Management

Proactively managing disputes in real-time is becoming a key strategy in reducing chargebacks. By using real-time alertsprovided by payment processors and banks, retailers can engage directly with customers before a chargeback is filed. This allows businesses to resolve customer complaints swiftly, whether through refunds or improved communication, preventing disputes from escalating into formal chargebacks.

This customer-centric approach not only improves satisfaction but also minimizes revenue loss from unnecessary chargebacks, making it a crucial trend for retail brands focused on maintaining healthy customer relationships and sales integrity.

4. Chargeback Analytics for Sales and Operations Improvement

Analysing chargeback data is now essential for understanding the root causes behind disputes. Modern chargeback solutions offer detailed reporting and analytics, helping retailers identify patterns related to product issues, unclear policies, or weaknesses in customer service. This data-driven insight empowers e-commerce professionals to make informed decisions about improving operational processes, refining product descriptions, or adjusting return policies to reduce chargeback rates.

Conclusion

The landscape of chargeback management is shifting rapidly, driven by advances in technology, the need for enhanced fraud prevention, and the importance of customer engagement. For senior e-commerce and payment professionals, adopting AI-driven chargeback solutions, focusing on fraud prevention through better authentication, leveraging real-time dispute resolution, and analyzing chargeback data are key strategies to protect sales and improve operational efficiency.

Staying ahead of these trends will help UK retail brands minimise revenue loss and build stronger, more secure e-commerce environments.

Are you searching for Chargeback solutions for your organisation? The Fraud Protection Summit can help!

Photo by Sergey Zolkin on Unsplash

Solve your biggest fraud challenges with Celebrus. Say hello @ Fraud Prevention Summit! 🚀
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Are you tired of reacting to fraud after it happens? You’re not alone. Many businesses struggle with outdated fraud prevention methods that are slow and ineffective. In a time where every second counts, the importance of instant, accurate, and proactive fraud prevention is crucial. 

Celebrus is your missing link for real-time identity resolution, behavioural context, and proactive fraud prevention. From anonymous visitors to authenticated users, our tech captures all digital interactions instantly and without friction, detecting anomalies like touch pressure, finger size, typing speed, and more to unite anonymous and authenticated identities and persist them across domains and devices.  

Empowering brands across the world to protect their business and customers, Celebrus is the ultimate fraud defence solution that solves for all fraud types by removing silos, black boxes, and data lag using true first-party data. Celebrus provides a unique and powerful approach to digital identity that complements and supercharges your current tech stacks, with no need to replace existing tools and systems. 

It’s time to elevate your fraud prevention and fill in your digital identity gaps! Make sure to come say hello at the Fraud Prevention Summit and request your meeting ahead of time today.  

Holiday shopping chargebacks: How retailers can prepare
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By JonCarlo Hernandez, Digital Marketing Manager at Jusst

The holiday shopping season brings both opportunities and challenges for merchants. While sales surge, so does the risk of fraud and chargebacks. With e-commerce reaching new heights – $222.1 billion in online sales from Nov. 1 to Dec. 31, 2023, up 4.9% year-over-year – retailers must prepare for the surge in transactions, and potential increases in illegitimate chargebacks.

How merchants can prevent chargebacks:

Implement Clear Communication & Policies

  • Clearly communicate shipping times and return policies to customers.
  • Provide real-time tracking information and set up automated return confirmations.
  • Make the refund process transparent and quick – notify customers promptly about processed refunds.
  • Use billing descriptors that clearly state the name of your business on credit card statements.

How merchants can mitigate the damage of:

Strengthen Data Collection & Documentation

  • Maintain robust transaction records, including delivery tracking and communication history.
  • Review your data storage and seek opportunities for better data hygiene and handling.
  • Calculate your win and recovery rates to identify areas for strategy improvement before the holiday surge.

Be Ready to Prevent the Best Evidence

  • Review card scheme rules, including Mastercard’s First-Party Trust and Visa’s Compelling Evidence 3.0 guidelines. Incorporating these programs can make a significant difference and even shift liability for qualified chargebacks.
  • Prepare resources to tackle common chargeback reason codes, especially fraud, “not as described,” and “product not received”.
  • Prepare to handle chargebacks related to Buy Now, Pay Later methods, which saw significant growth in 2023.

Leverage Automation to Improve Efficiency Amidst Volume Surges

  • Address scalability challenges by automating dispute processes.
  • Dispute up to 100% of chargebacks within minutes – minimize the risk of missing disputes.
  • Choose a solution that is easy to go live with.
  • Consider partnering with a flexible chargeback management solution that can handle multiple payment service providers (PSPs).
  • Consolidate data into one centralized hub for easier management and analysis.

Preparation is Key

Chargebacks can be a big challenge for retailers during the holiday shopping rush, but with proper preparation, they can be mitigated. Consider partnering with a chargeback management service to help with disputes and representment during the high-volume holiday season.

Justt’s automated chargeback management solution integrates easily with over 44 payment-service-providers to process and dispute 100% of chargebacks on behalf of merchants worldwide. Justt’s customer hub provides easy to understand case status and insights for each chargeback, so merchants can enjoy a more profitable and less stressful holiday season. Are you looking for AI-powered chargeback management solutions for your organization?

Justt can help →

Photo by sarah b on Unsplash

If you specialise in preventing Chargebacks fraud we want to hear from you!
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Each month on Fraud Prevention Briefing we’re shining the spotlight on a different part of the market – and in October we’ll be focussing on Chargebacks.

It’s all part of our ‘Recommended’ editorial feature, designed to help industry buyers find the best products and services available today.

So, if you specialise in Chargebacks and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Jennie Lane on 01992 374 098 | j.lane@forumevents.co.uk.

Oct – Chargebacks
Nov – Biometrics for Fraud prevention
Dec – Mobile Fraud Prevention
Jan – Digital Identity Verification
Feb – Fraud Prevention Solutions
Mar – Risk Prevention & Compliance
Apr – Financial Crime
May – Multi-factor Authentication
Jun – Digital Identity Verification
Jul – Fraud Detection Tools
Aug – Anti Fraud Platforms
Sep – AI for Fraud

WEBINAR: Unlock your revenue potential – Strategic chargeback management for EMEA payment leaders
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As chargebacks are projected to reach $165 billion by the end of 2024, ecommerce payments professionals are facing an unprecedented challenge—yet most are leaving 40% or more of disputes uncontested, leading to substantial revenue losses. This webinar will dive into the root causes, including the rise of first-party fraud and why neglecting to fight chargeback sends a signal to bad actors that you are “open for fraud.”

Tailored for payment professionals, this webinar will teach you how to safeguard your revenue, alleviate operational strain, and strengthen your standing with banks and processors.

Join Riskified on September 18th at 3 PM (GMT+1) to equip your business with the latest strategies and advanced tools to stay ahead in the evolving fraud landscape. You’ll walk away with the knowledge to:

  • Implement revenue-saving chargeback management strategies
  • Effectively prevent chargebacks upfront
  • Boost operational efficiency and unburden internal resources

September 18th, 2024 

3 PM GMT+1

Click Here To Register

Mastercard x Worldpay collab seeks to reduce merchant chargebacks
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Mastercard and Worldpay have formed a new partnership they claim will help merchants to resolve transaction disputes faster and with fewer chargebacks.

Chargebacks – a request for a refund triggered when a consumer disputes a transaction on their account – are a growing issue: industry-wide chargeback volumes are expected to reach 337 million by 2026, a 42% increase from 2023 levels.

Through the partnership, Worldpay, a global payment technology and solutions company, will offer Mastercard’s Ethoca Alerts to its 1 million merchants worldwide. The service provides an early warning system that helps prevent a dispute from becoming a chargeback and reduce potential financial losses due to fraud.

Ethoca Alerts, by Mastercard, works across all payment brands and delivers insights that merchants can use to stop the fulfilment of goods and services. Merchants do not need to change their existing infrastructure or processes to take advantage of Ethoca Alerts. 

The collaboration will also help improve authorization rates for merchants, enabling more of the $2.3tn total transactions Worldpay processes to be completed successfully thanks to fewer erroneously declined transactions.

Johan Gerber, Executive Vice President, Cyber and Intelligence at Mastercard said: “With ecommerce thriving, we’re working to make transactions as safe and as seamless as possible for all parties. This partnership with Worldpay extends our powerful technology to even more merchants around the world, reducing fraud. By working together, we will advance our shared goal of building trust and powering the global digital economy.”

Gabriel de Montessus, Executive Vice President, Global Enterprise at Worldpay said “We’re pleased to bring this solution to the market in partnership with Mastercard to deliver more value and innovation to our clients. Creating more accessible, more flexible and more seamless ways to reduce fraud, while accelerating commerce and protect consumers and merchants is what drives us at Worldpay.”

Between 2022-23 Ethoca Alerts enabled the prevention of $1.6bn in fraud due to chargebacks, helping to protect retailers from fraudulent claims.

Do you specialise in POS Verification & Chargeback Solutions? We want to hear from you!
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Each month on Merchant Fraud Briefing we’re shining the spotlight on a different part of the market – and in December we’ll be focussing on BPOS Verification & Chargebacks.

It’s all part of our ‘Recommended’ editorial feature, designed to help industry buyers find the best products and services available today.

So, if you specialise in POS Verification or Chargebacks and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Jennie Lane on 01992 374 098 | j.lane@forumevents.co.uk.

Photo by Blake Wisz on Unsplash