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Data for today’s episode is provided by Mercator Advisory Group’s Report: Chargebacks: Increases in Credit Card Disputes Threaten Merchant Profitability
Top Reasons Behind the Increase in Chargebacks:
- 45% of companies that process transactions identify delivery delays as a top reason for their increase in chargebacks.
- 43% of companies identify trouble scaling as a top reason for their increase in chargebacks.
- 43% of companies identify customer service delays as a top reason for their increase in chargebacks.
- 41% of companies identify labor crunch/shortage of workers as a top reason for their increase in chargebacks.
- 38% of companies identify merchant errors as a top reason for their increase in chargebacks.
- 29% of companies identify the interrupted supply chain as a top reason for their increase in chargebacks.
About Report
Mercator Advisory Group released a report covering chargebacks titled Chargebacks: Increases in Credit Card Disputes Threaten Merchant Profitability. The research explores the current state of the chargeback landscape, including the key factors causing a rise in chargeback volumes since the onset of the pandemic.
Merchants continue to experience high volumes of chargebacks, which pose significant risks to business operations and increase the likelihood of reputational loss. In the current supply-chain crisis, merchants must take proactive steps to better understand their chargeback issues and reduce the likelihood of high dispute volumes during the holiday season. It is particularly critical to develop a firm understanding of organizational capability to address all the dimensions of chargeback causes, and make an informed decision on how to address this growing issue.
“With consumers having access to easier means of initiating transaction disputes, merchants are facing growing chargeback risks in today’s market,” comments Amy Dunckelmann, Vice President Research Operations, at Mercator Advisory Group. Dunckelmann continues, “As merchants are bound to experience logistics and supply-chain issues this holiday season, it is of paramount importance to actively prevent as many chargebacks as possible through planning and targeted solution development. Mercator’s recommendations and insights through this report will aid all U.S. merchants in making informed operational decisions for the upcoming months.”
