Friendly Fraud to Reach $50 Billion in 2020
According to Mercator Advisory Group, friendly fraud will account for $50 billion this year. In fact, friendly fraud is the direct reason why merchant chargebacks occur. If this is something you’re interested in and need help with chargeback insurance providers, this is the right place to be.
Merchant Chargebacks: Chargeback Insurance Providers
Global eCommerce sales make up $3.5 trillion U.S.D. Ecommerce is anticipated to nearly double by 2023 to account for over $6.5 billion. This year, worldwide eCommerce sales are projected to reach $4.2 trillion U.S.D.
Over 2.1 billion shoppers are forecast to buy goods/services over the Internet by 2021. By the way, the number of this type of shoppers is increasingly found outside the U.S. What about merchants? Well, merchants are looking for ways to combat chargebacks more successfully.
Unfortunately, chargebacks create costly problems for retailers. Only 14% of shoppers contact a merchant before filing a chargeback, and 81% of shoppers filing chargebacks note they didn’t have time to contact the merchant. According to Visa, a proactive analysis of the situation can help avoid nearly 15% of all chargebacks.
With all this being said, working with a true merchant services specialist that can help you mitigate chargebacks easily is critical to your success. So, if you’re interested in chargebacks insurance providers, apply to a reliable and experienced payment processing company that offers exceptionally secure and cheap fraud prevention and chargeback elimination techniques.
Chargeback & Friendly Fraud: Trends to Consider
Here’re chargebacks and friendly fraud trends to take into account while running your eCommerce business:
- Growing automation in the chargeback resolution process
- Increasing demand for chargeback services
- It’s hard to detect friendly fraud, but detection companies are taking progressive steps
- Chargeback services become more extended to cover process management, merchant representation, and intermediation
- Mergers and acquisitions will lead to increased chargeback solutions with customer bases and proper tech
- Merchants will become more proactive in assessing their chargeback rates to see if it’s necessary to outsource chargebacks.
The eCommerce market isn’t a simple one. Quite naturally, merchants are looking for more effective ways to fight chargebacks and fraud to avoid costly consequences. That’s where respectable merchant services providers step in.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country that offers the safest and cheapest chargeback insurance providers in the space. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.