Merchants Fight for Protection from Fraudulent Chargebacks
Chargebacks were initially introduced to protect credit card-holding consumers in the United States, allowing them to receive a return of funds from an issuing bank and reverse an outbound transfer from their credit/debits cards.
However, over the years, a few rogue consumers have been using chargebacks to cheat merchants out of goods, and according to former online retailer Monica Eaton-Cardone, it is widespread ignorance about chargebacks, particularly on the part of merchants, that is contributing to this growing problem today.
Although stolen credit cards and identity theft were rampant problems in the Internet marketplace just five years ago, comprising almost 30 percent of all chargebacks, online retailers these days experience actual incidents like these less than five percent of the time. This is largely thanks to credit card companies, particularly Visa and MasterCard, issuing banks and authorities taking significant measures to ensure this doesn’t happen.
Now, more consumers are aware of the availability of chargebacks, and the process of filing one has been dramatically streamlined by most banks, as they now provide automated online features for filing chargebacks with the click of a button. This has led to a number of consumers engaging the practice of filing fraudulent chargebacks for products they have purchased online and already received, meaning they get something for literally nothing, in many cases.
After dealing with this issue for years now, Eaton-Cardone founded Chargebacks911, a company that aims to help merchants and financial institutions, alike, better understand and eventually revise the chargeback system, as well as educate consumers about the negative impacts or the current system.
Chargebacks911 aims to service merchants and banking institutions with chargeback solutions, including helping merchants take the offensive and confront unjust disputes, encouraging banks that provide credit cards to weigh the cases between cardholders and merchants before assigning guilt to merchants and issuing instantaneous chargebacks and informing consumers about the fact that too many chargeback fees will eventually result in higher rates and product prices.