In a recent Kount survey of 1,000 online, multi-channel and mobile commerce merchants, 82% of participating organizations reported they are disputing chargebacks today. Yet even with this high percentage, additional survey results indicated that organizations lack expertise or struggle finding success with the chargeback representment process.
About 40% of organizations that dispute chargebacks are representing more than 60% of chargebacks incurred. One-fifth of merchants win less than 15% of their dispute cases; more than one-third win less than 30% of their disputes; and nearly one-quarter aren’t aware or don’t keep track of their win rates.
CNP fraud and friendly fraud are the two primary sources of chargebacks. Nearly half of merchants say that CNP fraud is the primary source of chargebacks, yet only 45% of organizations are using a third-party fraud solution.
‘The State of Chargebacks: 2018 Report’ by Kount examines the health and status of chargeback management in the Card Not Present (CNP) payments space . It includes key facts and figures about chargebacks, dispute and win rates.
Getting to the root cause of chargebacks is critical, and this report found that for most merchants, CNP fraud and friendly fraud are the two primary sources of chargebacks . Nearly half of merchants say that CNP fraud is the primary source of chargebacks, yet only 45 percent of organizations are using a thirdparty fraud solution . The only two fraud prevention techniques or tools that more than half of merchants use are basic Address Verification Services (AVS) and CVV checks.
These insights, along with many other findings and the following Key Performance Indicators (KPIs) are measured in the State of Chargebacks Survey.
- Average Order Value (AOV)
- Chargeback Rate
- Chargeback Dispute Rate
- Chargeback Representment Win Rate
- Risk and Manual Review Team Size
- Tools, Services and Solutions Employed for Fraud Management
In addition, the organizations that took part in the survey share their insights about the tools, services, and solutions they employ for fraud detection and chargeback management, as well as the greatest challenges they face in combating fraud.