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Chargebacks? Better Dash!

posted on: Tue Sep 06 2016

Why Amazon’s Latest Innovation Could Have Your Customers ‘Dashing’ to claim a Chargeback

Amazon_Dash.jpgThe Internet of Things (IoT) gained its newest member this week as Amazon brought its Dash buttons to the UK market. The £4.99 Wi-Fi-enabled pieces of plastic, already familiar in the US, allow consumers to bring one-click shopping into their homes and order a specific household product from over 40 brands, all at the push of a button.

However, when the worlds of IoT and Card Not Present (CNP) payments combine, the ensuing potential for fraud could leave you wishing you had a button with Kount’s name on it for an emergency order of anti-chargeback advice.

But consumers can order the likes of toilet roll, dishwasher tablets and cat food when running low, all deliverable within 24 hours.

This all sounds great, and very convenient. But what happens when you accidentally bump into one of these buttons when loading the dishwasher? What happens when a young child presses the button over and over again, out of sight of the parents? And what happens when the dog realizes that a quick paw-print on the Cesar button means another package of tasty treats?

The answer is likely to be a wave of chargebacks amounting to serious value. Legitimate chargebacks are bad enough, but what’s to stop this technology being used fraudulently? After all, it would be easy to claim an accidental push when really you were just desperate for some coffee.

Well, Amazon has ensured that, once pressed, the buttons can only be used again once the previous package has been delivered. In reality, this control means that Dash is unlikely to cause serious headaches for online retailers.

However, this latest crossover between the IoT and payments does raise questions over the future of the relationship between the two. Any other brands entering the IoT world will need to ensure that they deploy similar measures to prevent a highly innovative and forward-thinking development becoming a chargeback nightmare.

If you’re concerned about the potential for chargebacks, or your business is suffering from them right now, then you’re in the right place. At Kount, we specialize in chargeback reduction. Drapers recently published our article on how fashion retailers can combat chargebacks, and our ebook on boosting financial returns for online apparel retailers is available on our site now.

Don’t dash in fear from the IoT. Kount is just ‘one-click’ away from helping you sell with confidence.

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