Deep Dive: How QSRs can Curb Chargeback Woes - Kount

As published in PYMNTS – 12/19/2019

A joint study conducted by Chargebacks911 and Kount last year found that 28 percent of food and beverage industry respondents had chargeback rates between 0.5 percent and 1 percent of transactions, while an additional 10 percent reported chargeback rates of more than 1 percent. This may seem like a small amount, but it is a significant increase from five years ago, when restaurants reported no chargebacks at all.

This increase in chargebacks is largely the result of increased mobile ordering. Most food orders used to be placed and completed in restaurant, resulting in chargebacks being rare to nonexistent. The problem could be immediately remedied if customers received incorrect items, and a suspected fraudster’s order could be quickly verified by checking the restaurant’s point of sale (POS) system.

Read the full article

Schedule a Demo

Conveniently schedule a call with sales to discuss your fraud protection strategy.