Chargebacks Up 21% Post-EMV

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Chargebacks are always going to be the most talked about issue in payments. Now with the 100% liability shift occurring with EMV getting a full year under its belt chargebacks have now become even more nagging for merchants. In a new study, officially released in August, researchers with Boston-based Aite Group said 260.3 million chargebacks worth $5.8 million will hit merchants in 2016. The estimates amount to 17% more transactions and 21% more in dollar volume after (EMV) liability-shift dates for in-store point-of-sale terminals.

CSP News reported the findings in a recent article stating that there has been a “21% increase in chargeback dollar volume after EMV.”

Speaking the research firm, Aite Group, CSP News stated, they were not able to correlate how much this development has contributed to the increase in chargebacks to merchants and that the findings are more indicative of “how EMV issuers were prepared for EMV ahead of merchants.”

Chargebacks continue to be a massive burden to merchants offering credit/debit payments to their customers. Friendly Fraud is also proving to be a major piece of the chargeback issue as 81% of chargebacks in an eCommerce business derive from “friendly fraud” incidents.

Companies are now looking to chargeback automation software tools to help find ways to manage the dispute process quicker and more effectively without hiring more people or increasing expensive resources. Automating the fulfillment process is a significant way to handling and combating the chargeback issue making sure your organization can combat and deal with these disputes timely, so financially impacting issues do not occur.

We recommend you find a solution that provides alerts and monitoring and as well as notification capabilities that tell you when a chargeback has occurred. We also recommend you find a solution that can automate the fulfillment of chargeback notices back to your processor(s) automatically. There are not too many of these on the market today that provide an archive of receipts and the ability to integrate with the POS but having that level of automation and integration will make the life of any treasury department much easier in contesting and dealing with increased chargebacks.

Check out First Touch Payment Solution’s Red Carpet Software as a viable solution in chargeback management. Red Carpet Software includes alerts and monitoring capabilities to notify any merchant that a chargeback has occurred, it then automates the fulfillment process making it easy and quick to contest and research transactions that are being disputed.

Learn more about Red Carpet Software today.