The third-annual publication provides insights into why disputes happen, how to effectively prevent and fight chargebacks, and what can be expected in the future. Midigator’s goal for the report is to provide relevant data that can serve as a benchmark to evaluate individual efforts.
The takeaways of the 2021 report highlight the dynamic nature of payment disputes:
Ongoing, technology-assisted chargeback management efforts continue to prove effective. The study’s chargeback-to-transaction ratio decreased 25.1% between 2019 and 2020. In total, the ratio has dropped 48.4% since 2017.
International risk fluctuates by region and year. Of the 47 countries in the study, 31 (or 66%) experienced an increase in their chargeback-to-transaction ratio between 2019 and 2020.
There’s significant value in fighting chargebacks. Merchants in 22 industries experienced an average return on investment of 595%, with revenue recovery reaching millions of dollars and labour savings amounting to thousands of hours.
The COVID-19 pandemic significantly impacted businesses in many ways, but the effect on chargeback management was minimal.
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