TAMPA,
Fla., April 24, 2024 /PRNewswire/ -- A recent
study released by Chargebacks911 highlights the Chargeback
Spectrum, showing that first-party misuse of the payment dispute
process is not always easy to define.
Chargebacks, or bank-initiated refunds, play an important role
in digital commerce. They offer assurance that customers will be
protected from fraud or dishonest merchants when
shopping online. Cardholders, however, often abuse the chargeback
process by disputing charges that they shouldn't. These
illegitimate disputes are called first-party misuse (or "friendly
fraud").
The Cardholder Dispute Index polled more than 2,000 U.S.
cardholders and outlined eight common scenarios of first-party
misuse. Respondents were then asked to rate how appropriate they
felt it was to dispute the charge in that context. They were
instructed to assign each scenario a rating on a scale from zero to
10, with 10 being "completely appropriate" and zero being
"completely inappropriate."
Responses were diverse, with eight being the highest score and
three being the lowest. This shows that cardholders have a complex
understanding of when it is — and is not — appropriate to file a
credit card dispute.
Chargebacks911 also asked merchants to participate in the same
exercise. Interestingly, their scores were similarly diverse, with
six being the highest score and one being the lowest. This shows
that, while merchants tended to grade more conservatively than
cardholders, there is a lot of nuance to the understanding of
first-party chargeback misuse on all sides.
"The interesting thing to me isn't that merchants and
cardholders saw things differently, but that they agreed as much as
they did," said Jarrod Wright, Vice
President of Marketing for Chargebacks911. "This highlights the
fact that first-party misuse of the payment dispute process is not
easy to define, and there's no central standard for what
constitutes a valid or invalid claim. We need to take the necessary
steps as an industry to ensure everyone is on the same page and the
playing field is balanced when it comes to facilitating
disputes."
Chargebacks911 recently released an infographic highlighting the
Chargeback Spectrum, which can be found here.
The online version of their report offers readers an interactive
chart to explore the data.
For more information on Chargebacks911 and their Software as a
Service (SaaS) solutions, visit www.chargebacks911.com.
About Chargebacks911
Chargebacks911® is the global leader in chargeback
prevention and remediation technology. As a provider or supplier to
financial technology companies, Chargebacks911 is the first global
company fully dedicated to providing merchants with an end-to-end
platform specifically designed to counter post-transactional
fraud and chargeback misuse. Today, Chargebacks911
safeguards more than 2.4 billion transactions per year on behalf of
2.5 million merchants in 87 countries. For details on
Chargebacks911's comprehensive dispute management solutions,
visit https://chargebacks911.com.
Media Contact: Justin
Clements
Tel: 877.634.9808 ext. 7905
Mobile: 812.621.0631
Email: 376645@email4pr.com
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SOURCE Chargebacks911