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PROTECTING YOUR ONLINE BUSINESS: CHARGEBACK FEE STATISTICS BY INDUSTRY


PROTECTING YOUR ONLINE BUSINESS: CHARGEBACK FEE STATISTICS BY INDUSTRY

In the simplest of terms, a credit card chargeback is a reversal of transferred funds, or a sale that’s refunded to a customer without the disputed goods being returned to the merchant and with the merchant being charged a chargeback fee.

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The process is initiated by a cardholder disputing a charge on their credit card, which may happen for any number of reasons. The card-issuing bank refunds the cardholder’s money and files a chargeback against your business. Although you may dispute the chargeback, the chances of your success decrease if the order was made online.

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Credit card fraud results in losses of inventory and sunk shipping expenses, plus chargeback fees that can exceed $75 per dispute.

Chargebacks account for 70% of fraud and cost merchants nearly $11.2 billion in lost revenue in 2015. As a result, online merchants must be vigilant about the transactions they process, ensuring their chargeback ratios — the total number of chargebacks divided by the total number of transactions during one month — stay under 1%. Higher rates can negatively affect a business’s reputation and bottom line.

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In today’s online purchasing environment, creating a frictionless checkout and encouraging transactions put merchants at an increased risk for chargebacks — threatening their growth, reputation and bottom line.

Learn more about how Clearsale’s Total Guaranteed Protection solution can guarantee you’ll never again pay for chargebacks. Email us at contact@clear.sale to find out how this solution can work for you.

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