While chargebacks continue to be a significant challenge for merchants, a new report from chargeback management technology provider Midigator found more resources are being employed against them and chargebacks have slightly improved overall. In its fourth annual The Year in Chargebacks report, Midigator said the chargeback-to-transaction ratio analyzed across 81 million transactions and $4.7 billion in total transaction volume decreased nearly 22 percent from 2020 to 2021.
Another positive highlighted by the report is that chargeback prevention has become a top priority for many merchants. Of those merchants polled in the research, 40 percent used at least one technology solution designed to prevent, manage or respond to chargebacks in 2021. Of those, nearly 64 percent used multiple solutions.
Corey Baggett, CEO of Midigator, noted that merchants using data-driven solutions to manage chargebacks experienced an average ROI of 914 percent in 2021—up 121 percent from 2020.
“Success derived from assumptions and guesses is only temporary,” said Bagget. “But data-driven decisions solve problems at their source, yielding sustainable results that improve over time."