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E-commerce Fraud And Chargebacks – Statistics And Trends

E-commerce Fraud And Chargebacks – Statistics And Trends

The state of ecommerce chargeback

Did you know that E-commerce industry suffered an estimated revenue loss of $6.7 billion due to chargebacks in 2016 out of which 71% ($4.8b) was due to friendly/chargeback fraud. Every dollar of fraud cost E-commerce merchants $2.40 in 2016, up from $2.23 in 2015. Check out our infographic on “E-commerce Fraud and Chargeback” for latest statistics and trends.

Ecommerce Fraud and Chargeback - Statistics and Trends

Infographic by- Invesp Landing Page Optimization Company

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Estimated average monthly value of Successful Fraud Transaction

Year Estimated Value
2013 $155
2014 $114
2015 $113
2016 $146

Top Chargeback Reasons

 Reasons %age
Fraud / No Authorization 57.9%
Cancel Recurring Billing 18.6%
Products / Services 18.3%
Liability Shift 3.5%
Others 1.7%

68% of online businesses were anticipating more fraud this year and 62% plan to invest more in fraud prevention

58% of cardholders do not contact the merchant at all – filing the dispute directly with the bank.  Only 14% of cardholders contact merchants prior to charging back

40% of consumers who file a fraudulent chargeback will do it again within 60 days and 50% within 90 days.

Credit card chargebacks are rising at a rate of 20% per year, and friendly fraud rose 41% over the last two years

Top Challenges for Merchants to Quickly Distinguish and Confirm Fraud

Challenge %age
Verification of customer identity 60%
Delay in payment confirmation 43%
Confirmation of package delivery 44%
Address verification 45%
Emergence of new and verified payment methods 26%
Limited ability to reclaim merchandise 25%
Assessment of fraud risk by country/region 11%
Challenges in acceptance of international based payments 13%
Lack of specialized fraud prevention 15%
Excessive manual order reviews 14%

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Published at Wed, 08 Mar 2017 13:58:30 +0000

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