Death, Taxes, and for Retailers, the Holiday Hangover
It is inevitable. We see it every year. Heck, we even warned you last year. Yet, just the thought of shoppers’ ever-increasing holiday spending blinds euphoric online retailers more than sugar-filled kids in line to meet Santa. Then, just as the sugar high wears down the kids, retailers face a mountain of chargebacks in the weeks following the holidays as they’ve left fraud prevention off their list once again. They’re feeling the effects of the Holiday Hangover.
This year, the National Retail Foundation reports that 59 million shoppers made purchases online over the Thanksgiving weekend and their average purchase was over $175 USD. Excitement over the boom in sales over the holiday season is commonplace among online retailers, where Cyber Monday has provided an opportunity to not just piggyback on the largely in-store Black Friday, but give online retailers their own day in the sun. This year, IBM Digital Analytics reports online sales over Thanksgiving weekend were up 16.5% from 2012. But, with a rise in sales lurks a rise in fraud.
If a retailer’s chargebacks after last year’s holiday season were more than the Merchant Risk Council’s recommended threshold of 1% and they’ve yet to take measures to prevent fraud in 2013, we’ll just say it: we told you so.
There is still time to put a solution in place. Chargebacks shouldn’t be the gift you receive after the holidays, but fraudsters stealing from your business aim to do so. Kount Complete can thwart fraudsters trying to take advantage of the holiday rush and not only stop loss, but increase your bottom line by allowing sales previously thought too risky.
Don’t suffer a Holiday Hangover once again this season. There’s no better way to finish 2013 than booming sales and a start to 2014 that doesn’t include excessive chargebacks.