E-commerce Fraud And Chargebacks – Statistics And Trends
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.
Infographic by- Invesp Landing Page Optimization Company
To Publish this Image on your Blog or Website . Copy this code
Estimated average monthly value of Successful Fraud Transaction
Year Estimated Value 2013 $155 2014 $114 2015 $113 2016 $146
Top Chargeback Reasons
Reasons %age Fraud / No Authorization 57.9% Cancel Recurring Billing 18.6% Products / Services 18.3% Liability Shift 3.5% Others 1.7%
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 identity 60% Delay in payment confirmation 43% Confirmation of package delivery 44% Address verification 45% Emergence of new and verified payment methods 26% Limited ability to reclaim merchandise 25% Assessment of fraud risk by country/region 11% Challenges in acceptance of international based payments 13% Lack of specialized fraud prevention 15% Excessive manual order reviews 14%
My name is Ayat Shukairy, and I’m a co-founder and CCO at Invesp. Here’s a little more about me: At the very beginning of my career, I worked on countless high-profile e-commerce projects, helping diverse organizations optimize website copy. I realized, that although the copy was great and was generating more foot traffic, many of the sites performed poorly because of usability and design issues.View All Posts By Ayat Shukairy
Join 25,000+ Marketing Professionals
If you enjoyed this post, please consider subscribing to the Invesp blog feed to have future articles delivered to your feed reader. or,receive weekly updates by email:
Connect with us
The Art and Science of Converting Prospects to Customers
By Khalid Saleh and Ayat Shukairy
- Augmented Reality in E-commerce – Statistics and Trends
- The illusion of Completeness: How to break this fatal UX design mistake
- How to Analyze A/B Test Results
- JTBD and using it on Conversion Projects
- How much does it cost to hire a CRO firm?
- Road Map to Effective Personalization: When, how and what to do!
- 6 Usability Pitfalls that Developers Should Avoid
- Crunching UX Data for Actionable Insights
- Which Comes First? Content or Layout?
- 6 uncomfortable thoughts on AB testing | #CRO