Merchant Chargebacks Are on the Rise Due to Friendly Fraud


Friendly Fraud Is Driving Increased Merchant Chargebacks. New Mercator Advisory Group research report discusses the changing dynamics of merchant chargebacks.

Author: Raymond Pucci
Published on: December 23, 2019

Merchants find themselves wrestling with the chargeback process, which is triggered when consumers dispute a purchase transaction, mostly on e-commerce sales. Increasingly, friendly fraud has also become a direct cause of merchant chargebacks. This report delves into chargeback reasons and implications as well as vendors of chargeback services that have emerged to provide solutions for merchants.

A new research report from Mercator Advisory Group, Merchant Chargebacks Are on the Rise Due to Friendly Fraud assesses the challenges and preventive solutions for this increasing problem that affects merchants of all sizes across vertical markets.

“Merchants are incurring a major pain point dealing with consumer-disputed sales transactions that can lead to chargebacks. This can mean merchants lose not only the sales revenue but also the merchandise and related overhead costs as well,” commented Raymond Pucci, Director, Merchant Services at Mercator Advisory Group, the author of this report.

This report is 14 pages long and has 2 exhibits.

Companies mentioned in this report: ACI Worldwide, American Express, Authorize.Net, BlueSnap, Braintree, CardinalCommerce, Chargeback, Chargebacks911, Chargeback Gurus, Chargehound, CyberSource, Discover, Ethoca, Federal Reserve Board, Lexis-Nexis, Mastercard, Midigator, PayPal, Stripe, Verifi, and Visa.

Highlights of this research report include:

  • Ease of the customer dispute process
  • Why friendly fraud has been linked to chargebacks
  • How crafty consumers game the dispute system
  • Market data estimates of chargebacks and friendly fraud
  • How merchants are combatting chargebacks
  • Brief profiles of chargeback service companies



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