Midigator, a company that uses technology to remove the complexity of payment disputes, provides insight into why chargebacks happen, how to prevent and fight chargebacks and what’s in store for the future.
Key takeaways from this year’s report highlight that the average chargeback-to-transaction ratio decreased 13.3% between 2017 and 2018. Still, fraud is a significant and increasing concern. 70 % of all disputes were categorised as fraud, which was a 20.4% increase from 2017.
As a result, false consumer claims make it difficult to recognise the real reason for disputes. 77% of fraud-related chargebacks were actually cases of friendly fraud. Chargebacks are a growing concern in many international markets. Three countries in particular had a significant increase in their chargeback-to-transaction ratios between 2017 and 2018: Sweden (768 %), France (632%), and New Zealand (299%).
Data was collected from a diverse subset of global merchants, representing various industries, billing models, transaction volumes, and dispute management styles.
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