Friendly Fraud and U.S. Cities with High Chargebacks
Fraud continues to plague the e-commerce industry.
Chargeback911 released a new study that reveals which U.S. cities had the highest rates of chargebacks for credit card disputes (see below).
Researchers analyzed records of 500,000 chargebacks and relative transactions for e-commerce purchases made in 2013 in order to illustrate the growing trend of transaction dispute chargebacks and their potential link to friendly fraud, noted company co-founder Monica Eaton-Cardone.
Chargebacks (as retailers are likely all too familiar with) may be processed for a number of reasons, including identity theft, overcharges or failure to receive a promised product or service. However, Eaton-Cardone asserts that a growing number of chargebacks are due to a practice known as friendly fraud, in which consumers authorize a purchase and receive the goods or service but subsequently attempt to reverse the charge.
See the cities (and postal codes) for those U.S. cities with the highest chargebacks below:
+ 2.2% chargeback rate: Show Low, AZ 85901
+ 1.7% chargeback rate: Port Washington, NY 11050
+ 1.5% chargeback rate (3-way tie): San Jose, CA 95131; Astoria, NY 11105; and Miami, FL 33145
+ 1.4% chargeback rate (2-way tie): Chicago, IL 60646 and Sherman Oaks, CA 91423
+ 1.3% chargeback rate (9-way tie): Sarasota, FL 34234; Los Angeles, CA 90057; Woodland Hills, CA 91364; Orlando, FL 32836; Whittier, CA 90603; Alhambra, CA 91801; Plainview, NY 11803; North Hollywood, CA 91602; and Houston, TX 77067