We live in a world where online shopping has become the norm. Globally, more than a million dollars in ecommerce sales occurs every 30 seconds. And about $270,000 of that amount is transacted via mobile devices.
Along with that activity comes an ever increasing amount of credit card fraud. And that means the card issuers, merchants, and acquirers take huge losses from chargebacks. In 2014, the total was $16.31 billion in 2014, and that was a 19% increase over 2013. In fact, statistics show that 2014 was the fourth straight year in which fraud losses exceeded growth in total card volume.
Obviously, there’s been a crying need for effective merchant chargeback protection for the ecommerce industry. It has been hit hard by chargebacks related to claims that products were not delivered, service wasn’t received, or the consumer didn’t place the order at all.
Chargeback protection is a new service designed to give merchants all across the country the ability to confirm customer information and to monitor and validate purchases and deliveries. Using Mastercard and Visa payment gateways, it provides reminders, manages changes and modifications and helps to facilitate ordering and payment transactions to insure a smooth and problem-free delivery of products and services.
Providing chargeback protection for merchant credit card processing will have a positive impact on cash flow, greatly simplify the conduct of business online and help to restore consumer confidence. It was predicted that by the end of 2015 some 1.2 billion people would have bought goods and services online. But 60% of those shoppers express concern about the possibility of credit or debit card fraud when they buy on the internet.
Online shopping retail sales are predicted to continue growing, possibly reaching as high as $370 billion in 2017. In 2012, the total was $231 billion. And the number of transactions per year should reach 125 billion by 2018.