Kount and Chargebacks911 release inaugural report on the state of chargebacks02-Feb-2018
The inaugural report assessing the current state of fraud and chargeback management in card-not-present (CNP) transactions has been released by Kount and Chargebacks911.
The 2018 State of Chargebacks Survey shines a light on the state of fraud within the Card Not Present (CNP) channel, including key facts and figures such as chargebacks, disputes and win rates.
The report found that while most merchants are actively disputing chargebacks (82%), 10% are in excessive chargeback programs and almost one in four (24%) state they had no idea what their actual win rate was when it came to those disputes.
However, of the 82% of surveyed organizations that reported they are actively disputing chargebacks, one-fifth of merchants are winning less than 15% of their dispute cases and more than one-third win less than 30% of their disputes.
But some merchants do give up the good fight, as 11% of respondents said they do not dispute or re-present any of the chargebacks they receive. Reasons for not doing so included:
- They don't believe they have a large enough volume of chargebacks to warrant re-presenting them (28%)
- A lack of resources within the organization (27%)
- They are discouraged from disputing chargebacks, stating they couldn't win any of their re-presentments when they tried (15%)
- 16% of respondents did not know why they don't dispute chargebacks
Nearly half of respondents overall (48%) claimed CNP fraud was their biggest source of chargebacks, followed by friendly fraud (28%), account takeover fraud (7%), and merchant error (4%). Meanwhile, 12% of organizations reported that they don't know the cause of the majority of their chargebacks. The two most cited challenges with chargebacks were disputing them (59%) and being able to identify friendly fraud (58%).
More than one thousand respondents, representing organizations of all sizes and industries and across varied geographical areas, participated in the survey, sharing their experiences, insights, and performance related to managing risk and chargebacks for online and mobile commerce.