A Very Merry Chargeback Christmas for Internet Retailers
The holidays can be a joyous time for Internet retailers, but along with the dreams of sugarplum fairies dancing in their digital heads come very real lumps of coal in the form of chargeback requests.
New details from payment fraud and security technology provider SecureBuy reveals that current merchant practices in fraud management are far from sufficient. The SecureBuy Magento 2013 Fraud Report addresses how merchants are handling issues including chargebacks, refunding and friendly fraud.
The study, which was conducted earlier this year and distributed exclusively to Magento merchants, reveals that half of CNP (card not present) chargeback requests go unanswered.
"Chargebacks have always been seen as the elephant in the room; however, the findings revealed that many merchants aren't taking even the most basic of precautions against chargebacks and friendly fraud," says James Packer, Esq., Chief Operating Officer and General Counsel of SecureBuy. "We hope that some of the findings in this study serve as a wake-up call."