In the ever-evolving landscape of retail, understanding consumer preferences for payment methods at physical locations has become crucial for businesses aiming to enhance the shopping experience and increase customer satisfaction. As digital wallets, contactless cards, and mobile payment solutions continue to gain traction, traditional cash and card payments remain significant.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: A New Era of Chargeback Management
Preferred Payment Methods at Physical Locations
- 39% – Major credit card
- 31% – Major debit card
- 15% – Cash
- 3% – Contactless at the POS
- 2% – Store-specific card
About Report
The chargeback—a forced refund to a cardholder’s account that is initiated by the issuing bank—turns 50 years old later this year. The maneuver, legislated into existence to foster trust in card payments at a time when few consumers were using them, has aged into a management headache for merchants. In an age of proliferating card usage and ongoing growth of e-commerce channels, chargebacks are easy to initiate and easy for consumers to win. Merchants, meanwhile, need help with the complex process of challenging chargebacks, heading them off in the first place, and avoiding the escalating consequences of a high chargeback rate. It’s an endurance test most merchants are not equipped to navigate alone.
This Javelin Strategy & Research report looks at where chargebacks started out and how they have evolved into a present-day challenge for all kinds of merchants. It lays out the stakes for harboring an unchecked high chargeback rate, denotes strategies for communicating with consumers to reduce instances of so-called “friendly” fraud, and examines the value of dedicated service providers versed in representment and building strategies to stem the chargeback tide.