Majority of chargebacks are fraudulently placed
Global Risk Technologies, a leading technology company specialising in chargeback compliance, today releases a new white paper examining the threat of friendly fraud in Card-Not-Present (CNP) transactions and examines why this problem continues to get worse.
E-commerce is growing at close to 20% per year in the EU, while total ecommerce revenues are predicted to be €185.39 billion for 2015. It is important that consumers can buy with confidence if this trend is to continue.
The problem is that friendly fraud has been growing 41% in recent years, costing over €10bn in industry losses, compared to around €2bn lost through ID fraud, according to Visa.
A vital part of the consumer rights toolkit for credit card customers is chargebacks. These exist to provide reassurance that if goods arrive damaged, not as advertised, or if the merchant ceases trading, the customer can recoup some of the costs directly from the credit card issuer.