Nearly 60 percent of respondents in a recent study think their chargeback rate has increased since the onset of the Covid-19 pandemic in March 2020. And, of those, the results of the survey from antifraud technology provider Kount say, 45 percent believe that delivery delays are the main culprit.
When the pandemic forced many people to stay in their homes, e-commerce skyrocketed and supply chains buckled under the pressure, causing significant delivery delays consumers were not used to. Merchants believe many consumers who were expecting deliveries initiated chargebacks when those deliveries were delayed.
More merchants than ever report chargeback rates close to or exceeding the important 1 percent threshold that could land a business in one of the networks’ chargeback monitoring programs.
According to results of the study, 47 percent of online merchants estimate their company’s current chargeback rate is between 0.6 and 1 percent. And, one-third estimate their company’s current chargeback rate exceeds 1 percent.
In the past 12 months, 70 percent of those polled said their business had been in a fraud monitoring program for excessive chargebacks due to fraud.
The top chargeback challenges identified by merchants in the study were lack of experience in chargeback prevention (cited by 32 percent of respondents), lack of chargeback prevention strategies (22 percent) and not having enough resources to dispute chargebacks (17 percent).