Fraudsters are poised and ready to pounce on online shoppers who plan to do most of their purchasing via e-commerce this holiday season, according to a new report.
The study, from MyChargeBack, also finds e-commerce purchase volume rose globally by 15 percent over the first half of 2020 compared to the same period in the previous year. Online consumer spending with online retail purchases increased by over $100 billion this year. Holiday e-commerce is expected to be bigger than ever before due to social distancing mandates resulting from the coronavirus pandemic.
The paper predicts chargebacks will also be an increasing problem.
"Even with the best of intentions, it’s clear that when purchases are made online, with less opportunity to closely examine the purchase or discuss it with the seller, the chances of dissatisfaction go up. In the shadow of the coronavirus, these disputes have become their own pandemic, with April 2020 seeing a shocking 27 percent increase over the previous year,” said author and MyChargeBack’s vice president of Global Operations, Michael Cohen.
The paper forecasts that the consequences of Covid-19 on banking, commerce and consumers may be permanent and significant.
"Banks and merchants are tasked with processing chargebacks pertaining to the credit cards they issued or accepted,” said Cohen. “These departments were already swamped before the shutdown. This will only get worse as volume increases even as staffing grows tighter.”
Learn more about preventing chargebacks...