Six most common merchant pitfalls revealed in new chargebacks playbook

Are merchants prepared for Black Friday Fraud?
Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn

Global Risk Technologies, a leading technology company specialising in chargeback compliance, released a new Chargeback Playbook that details the top six most common pitfalls that merchants need to look out for in relation to chargebacks.

UK online spending is expected to grow by 14% to reach £156.67bn in 2015 and chargebacks are threatening merchants like never before, costing over €10bn (£7.5bn) in industry losses, compared to around €2bn (£1.4bn) lost through ID fraud, according to Visa.

All merchants will at some point deal with chargebacks. As well as losing the money when a disputed card payment is charged back to them by their bank, they lose the cost of the goods or service they provided.

Monica Eaton-Cardone, CIO and co-founder of Global Risk Technologies said: “Friendly fraud chargebacks are the hidden problem of the retail world. We have released this playbook to provide an easy-to-follow guide for merchants that will help to reduce their chargeback losses. The worry for many of them is that they often do not know about the problem until they get hit with a chargeback. By working out a plan of action in advance, merchants can reduce the risk of chargebacks happening in the first place. But when they do occur, decisive steps are key.”

 The six most common merchant pitfalls identified by Global Risk Technologies are:

 1. Poor customer service

Only 14% of customers contact the seller before they instruct their bank to reclaim their money.

 2. Out-of-office hours

If customers cannot contact the merchant at any time, they may well contact their bank instead and instigate a chargeback.

 3. System and process fails

Chargebacks can happen when technology systems and payment processes fail.

 4. Fraudulent transactions

When payment cards or card details are stolen, the criminal transactions are charged back and the merchant becomes responsible for the cost.

 5. Poor logistics

If the consumer does not receive the product they ordered, the merchant loses the item they’ve sent out as well as the refund and chargeback cost.

 6. Friendly fraud

Consumers buy and receive a product but still initiate a chargeback, which is fraudulent, and the merchant fails to identify the fraud and challenge the chargeback.

To find out more about managing these common pitfalls and controlling the chargeback risk, visit to download the full, free playbook guide.

Global Risk Technologies provides a comprehensive and highly scalable merchant-centric solution for chargeback processing, risk mitigation, fraud management and education that is unrivalled anywhere else in Europe. To find out more about combatting the chargeback threat visit

Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn

Leave a Comment

Time limit is exhausted. Please reload CAPTCHA.