The realities of financial liability for e-commerce fraud have made “chargeback” a dirty word for merchants, but industry-wide visibility into the subject has not always been easy to get. New research aiming to change that found that, while 82 percent of online merchants are disputing chargebacks, win rates vary widely—when merchants even track them.
The 2018 State of Chargebacks Survey from Kount and Chargebacks911 found that, of the 82 percent of businesses that said they respond to chargebacks, half win 30 percent or fewer of their disputes, one-fifth of those merchants win fewer than 15 percent. More troubling, perhaps, nearly a quarter of merchants that dispute chargebacks do not even know their win rate.
The survey also asked merchants what kind of fraud was the biggest source of chargebacks for them. Overall, CNP fraud was identified as the biggest source of chargebacks for the most merchants (48 percent). Nearly 30 percent named friendly fraud as the type of fraud that generated the most chargebacks for them, followed by 7 percent who tabbed account takeover.
The report also examines some chargeback trends broken down by merchant vertical. Event ticketing, apparel, home goods and travel were verticals associated with chargeback rates of 0.5 percent or less. Download a copy of the report here.