The credit card industry is extremely competitive and is constantly looking for ways to attract new consumers, who are often put off by high interest rates and fees. Companies looking to compete have had to get creative, prompting many of them to forego lowering interest rates and instead promoting "liberal chargeback policies" designed to attract consumers with a promise of zero liability. But as cases of friendly fraud have grown to account for about a fifth of the fraud experienced by online merchants (1) and cost retailers nearly
While some claims of friendly fraud are accidental--such as when a consumer reports "a charge because they don't realize another member of their household made the purchase or the charge information on their statement doesn't match up to a recognized retailer name" (2)--Chargebacks911 co-founder
"Many companies are now promoting a 'zero liability policy,' meaning that cardholders are not responsible for fraudulent purchases made with debit and credit cards--but instead of protecting consumers, this policy essentially gives them a surefire way to secure a refund for any purchase, even if it was legitimate," said Eaton-Cardone.
According to Eaton-Cardone, companies licensed by Visa and
But in a stark and interesting contrast to the rest of the industry,
"Credit card companies are misinformed in believing that advertising zero liability through very liberal, essentially effortless chargeback initiation which rewards higher profits and a more competitive market edge is a 'risk free' model for them," said Eaton-Cardone. "They are incentivizing consumers to leverage loopholes in the system and further exploit chargeback fraud, because it is now a widely 'accepted' practice that not only banks are unwittingly endorsing--but the true cost negates the phantom profits they assumed were more favorable than reducing interest rates."
Rather than accepting chargebacks as an unavoidable aspect of commerce, Chargebacks911 encourages credit card companies to adopt practices which offer unbiased protection to both consumers and merchants against dishonest and unauthorized credit and debit card purchases. Because the time-consuming process of fighting chargebacks can discourage merchants from disputing them altogether--a practice which Eaton-Cardone says inadvertently rewards incidents of chargeback fraud and leads to more chargebacks, rather than fewer--Chargebacks911 also suggests seeking the help of a chargeback specialist who can assist them with avoiding a significant monetary loss, while also ensuring the viability of their business.
Chargebacks 911 was created by Eaton-Cardone, a former online retailer herself plagued with friendly fraud, in order to provide solutions to merchants' chargeback issues. After her own trial and error in experiences with chargeback issues, she formed Chargebacks911 to provide fast and reliable services that not only help to recoup the loss of funds as a result of increasing chargebacks, but to also curb future chargebacks so that merchants retain all processing abilities.
Chargebacks911 specializes in servicing merchants and the majority of banking institutions in mitigating chargeback disputes. The company has expanded its gross processing dollars to over
For more information about Chargebacks911 and its services, visit http://www.chargebacks911.com.
1. Rueter, Thad. "E-retailers Face the Threat of So-called 'friendly Fraud.'" N.p.,
2. Harper, Elizabeth. "'I Didn't Buy That': Friendly Fraud Costs Retailers
Read the full story at http://www.prweb.com/releases/2014/06/prweb11982341.htm
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