This year alone, merchants are expected to lose $50 billion because of friendly fraud. Who can help you with secure and affordable merchant services, including business funding? No worries. Find the answers below.
Friendly Fraud Issues: What About Business Funding?
The so-called “friendly fraud” happens when cardholders file a dispute concerning legitimate charges with their credit card provider and request a refund claiming the merchant has made an error.
Friendly fraud is anticipated to force merchants to lose $50 billion this year. As you know, this type of fraud plays a significant role in initiating chargebacks. By the way, merchants lose $118 billion annually because of false declines, which made up about 20% of total U.S. eCommerce spend last year. In fact, only 29% of merchants keep their false positives under control.
What about you? Are you taking the right measures to fight fraud and chargebacks with success? A reputable merchant services provider in your field can be the best helping hand in this regard.
Just get down to finding the most suitable merchant services for your own business needs. With a true merchant services providing expert, you can enjoy the most advanced and cheapest fraud and chargeback prevention techniques for payment processing, and the necessary business funding.
Chargebacks & Friendly Fraud: Current Stats
By 2022, eCommerce is expected to account for 17% of all sales. 1/3 of the population worldwide (1.92 billion people) will be making purchases over the internet. The rate of anticipated losses for retailers caused by CNP (card-not-present fraud) is projected to make up $130 billion by 2023.
U.S. consumers are forecast to spend $604 billion in the eCommerce U.S. market this year. As a result, merchants to lose $1.4 trillion because of shopping cart abandonment. Given the overall illegitimate chargebacks, only 18% of the 80% of merchants who file disputes win.
Let’s look at some more numbers:
- Chargebacks increased by 179% during the past 2 years
- Such growth made merchants lose 1.9% of their total annual revenue
- They’re forecast to account for 40 billion dollars before 2025
- Friendly fraud stays behind almost 86% of all chargebacks
- 31% of merchants consider friendly fraud their #1 challenge
So, friendly fraud is growing at a rate of 41% every 2 years. It’s expected to cost merchants $50 billion this year alone.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter, and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country offering exceptional merchant services, including business funding. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.