Chargeback statistics 2017 is here. Already barreling in for the 2017 calendar year. Chargebacks are a nasty cost of doing business with electronic payments. The reasons for why they occur are pretty well known but unfortunately there is little published information regarding chargebacks coming from issuing banks and card networks. It would always be interesting to know what the dispute win rates are for our merchants wouldn’t it? We have put together an insights infographic for merchants who want a compiled list of the most significant chargeback statistics 2017 that are available.
Below is our Chargeback Statistics 2017 infographic. As you can see most chargebacks are more than likely cases of friendly fraud. Merchants must start investing in solutions for up-to-date insight into the problem to protect against developing risks. eCommerce industries continue to grow and will endure these figures for years to come while “brick and mortar only” retail chains will see a reduction as consumers continue to migrate online.
The insights we find most intriguing is the chargeback ratios by industry. If you are not familiar with a chargeback ratio it is a simple calculation where you take the (number of credit card transactions) and the (number of chargebacks) that occur and divide them together. So Let’s say annually you have 50,000 transactions and 1,000 chargebacks. Simply take 1,000/50,000 and you get your chargeback ratio which is .02%. But, regardless of the data, your chargeback ratio still needs to stay below 1 percent. Why? Because if not then the card associations will put you on a MATCH (Member Alert to Control High Risk Merchants) list that was created by Mastercard as a means of compiling information on businesses and their owners when their merchant accounts have been terminated. When it comes to safeguarding your chargeback ratio, intercepting disputes before they happen is the only way to stop them from negatively impacting your chargeback ratio.
Sources Used For Infographic
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