• E-commerce Fraud And Chargebacks – Statistics And Trends

    By Ayat Shukairy
    an infographic on eCommerce 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.

    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

    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%

     

    FigPii Heatmaps

     

     

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Ayat Shukairy

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.

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Ayat Shukairy

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