Something is awry when 50% of business owners claim to be dealing with their most costly and contentious problem. Chargebacks are a problem that merchants and their payment partners wish to handle and must do so.
For the report “Dispute-Prevention Solutions: Protecting Profits and Customer Relationships With Third-Party Tools,” a Verifi partnership, more than 300 merchants were surveyed regarding the ongoing chargeback issue and the areas where it frequently has the worst effects on receipts and customer relations.
The greatest problems resulting from chargebacks The fact that 50% of merchants said that controlling their chargeback costs was their biggest obstacle is only the beginning of the issue.
False positives can result in a sale being rejected for a variety of reasons, such as lowering the risk of fraud and disputes, but they also cost the merchant money, the study found. 20% of survey respondents said false positives are their biggest problem, and 18% said they are their second biggest problem.
Along with chargebacks, banks and card processors impose costs and fines, with 16% of merchants citing these as the biggest difficulties brought on by chargebacks, while 4% cited additional fees they must pay as the worst issue. Furthermore, 21% of merchants ranked client attrition as their second-biggest issue after chargebacks, according to 9% of them.