Melayna Gabiou: Every merchant experiences chargebacks, I just want to ask you - do you know where you rank against your peers?
Kount and Chargebacks 911, partnered in launching The State of Chargeback Survey at the end of last year. We had over 1,000 respondents from all different sized companies and many different industries.
Merchants are always monitoring chargebacks. It's a commonality between all of eCommerce merchants, and they're really interested in benchmarks, and that's one of the reasons why we hosted this survey. They're interested in what is an average chargeback rate that I should be at.
More than 70% of merchants would like an optimum chargeback rate of less than 0.5%, but only 47% of merchants are attaining that. That just reiterates how important that metric is to merchants, how they're always trying to improve and do better when it comes to chargebacks.
One of the other interesting statistics from the survey is that 48% of merchants track that their chargebacks come from card-not-present fraud, while 28% of merchants track that friendly fraud as their main source of chargebacks, Those are two important metrics, or things to know and ways to minimize chargebacks by definitely getting to the root of the problem and fighting those.
Some of the biggest pain points that merchants are experiencing with chargebacks are related to disputing chargebacks, that is often because fraud teams are really small, and they may not have the resources to fight those chargebacks, or they may not know what strategies and what they need to do to fight those chargebacks, what data is needed.
Merchants can come together, fill out this type of a survey, or communicate with other fraud-prevention teams what their chargeback rate is, what the challenges they're seeing, what some of the new techniques that they're seeing with criminal and friendly, fraud, and help them better understand how to fight that never-ending game of chargebacks.