According to Expert Market, the latest chargeback fraud statistics are as follows:
- A customer who is successful in filing – and winning – a chargeback dispute is nine times as likely to initiate another one.
- 40% of consumers who file a chargeback will do it again within 60 days.
- 81% of customers admit to ‘convenience’ as their primary motivator when it comes to filing a chargeback.
- Friendly fraud generally goes up at a rate of around 41% every couple of years…
- Almost half (49%) of friendly fraud chargebacks occur as a result of a misunderstanding. The customer simply wasn’t aware they were filing a chargeback!
- Each year, the global average cost of chargebacks is around 0.47% of total merchant revenue.
- Online sales make up almost half (55%) of all fraud experienced by multi-channel merchants.
Furthermore, some of the classifications of chargebacks are;
1) 30% of chargebacks are made due to stolen cards
2) 26% initiated from a product never arriving
3) 15% from retailer shipping wrong product
4) 8% from products not meeting customer needs
5) 3% clerical errors
WIZZIT’s Tap On Phone solution is not only used for merchants looking to use their mobile phone as a POS (point of sale) device but now also allows online customers to use their own devices as a POS device to checkout.
What does this mean? It means that when a customer wants to pay for their goods online, they can now simply tap their bank card to the back of their mobile device, input their bank PIN when prompted and the payment is done. It would feel like an in-store experience, only using your own device as a payment terminal.
This would have a huge impact on chargeback fraud which occurs with stolen cards. Fraudsters would need to know the card’s PIN to complete an online transaction.
It also has massive benefits to the merchant. The cost of the transaction becomes substantially less with their customers using the Tap On Phone checkout. This is because the transaction is not classified as a Card Not Present transaction.
WIZZIT have been in discussions with both Visa and MasterCard for our eCommerce solution and now we are entering into pilot with some of our global partners. We are looking to expand on our pilot client base so please do get in touch with us if this is something you would like to explore in more detail. email@example.com or find us through
Contact us: https://wizzitdigital.com/contact/