2015 Holidays: Record Mobile Commerce (And Record Chargebacks?)
Early reports indicate record holiday mobile commerce…nearly $1 billion on Cyber Monday alone. That’s a huge 53% jump over 2014.1 The bad news? Those mobile transactions were 2X more likely to involve fraud.2
So if you invested in building your mobile capabilities for the 2015 holidays, you may be caught by surprise with much higher chargebacks over the next few months.
Why? Fraud is responsible for nearly 2 out of 3 chargebacks. So the higher fraud associated with mobile commerce means higher chargebacks. What’s worse, the lag in chargeback reporting – often 60-90 days or more – can hide underlying fraud until too late. Even when the problem finally does become apparent, it may be impossible to find the root cause via audit due to the age of the data.
However, if you had a best-in-class fraud prevention solution in place – like Kount – that delivered the 8 capabilities vital to mCommerce fraud prevention, you cleaned up with higher mobile sales over the holidays AND lower fraud rates, too.
On the other hand, if you’re seeing above normal chargebacks, contact Kount to see how we can help you prevent mCommerce fraud and cut chargebacks by 20% to 50% or more.
1 http://www.comscore.com/Insights/Press-Releases/2015/12/Cyber-Monday-Surpasses-3-Billion-in-Total-Digital-Sales-to-Rank-as-Heaviest-US-Online-Spending-Day-in-History, 2 Fraud Practice, Payment Trends and Security, David Montague