• E-commerce Fraud And Chargebacks – Statistics And Trends

    The state of ecommerce chargeback

    Did you know that E-commerce industry suffered an estimated revenue loss of $6.7 billion due to chargebacks in 2016 out of which 71% ($4.8b) was due to friendly/chargeback fraud. Every dollar of fraud cost E-commerce merchants $2.40 in 2016, up from $2.23 in 2015. Check out our infographic on “E-commerce Fraud and Chargeback” for latest statistics and trends.

    Ecommerce Fraud and Chargeback - Statistics and Trends

     

    Infographic by- Invesp Landing Page Optimization Company

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    Estimated average monthly value of Successful Fraud Transaction

    YearEstimated Value
    2013$155
    2014$114
    2015$113
    2016$146

     

    Top Chargeback Reasons

     Reasons%age
    Fraud / No Authorization57.9%
    Cancel Recurring Billing18.6%
    Products / Services18.3%
    Liability Shift3.5%
    Others1.7%

     

    68% of online businesses were anticipating more fraud this year and 62% plan to invest more in fraud prevention

    58% of cardholders do not contact the merchant at all – filing the dispute directly with the bank.  Only 14% of cardholders contact merchants prior to charging back

    40% of consumers who file a fraudulent chargeback will do it again within 60 days and 50% within 90 days.

    Credit card chargebacks are rising at a rate of 20% per year, and friendly fraud rose 41% over the last two years

    Top Challenges for Merchants to Quickly Distinguish and Confirm Fraud

    Challenge%age
    Verification of customer identity60%
    Delay in payment confirmation43%
    Confirmation of package delivery44%
    Address verification45%
    Emergence of new and verified payment methods26%
    Limited ability to reclaim merchandise25%
    Assessment of fraud risk by country/region11%
    Challenges in acceptance of international based payments13%
    Lack of specialized fraud prevention15%
    Excessive manual order reviews14%

     

     

     

Ayat Shukairy

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