AMERICAN FORK, Utah--(BUSINESS WIRE)--When it comes to chargeback management, there can be a lot of unknowns. A lack of understanding typically results from a lack of transparency. To help eliminate this confusion and provide needed clarity, Midigator® today released “The Year in Chargebacks” report.
The first-annual report published by Midigator, a company that uses technology to remove the complexity of payment disputes, provides unprecedented insight into why chargebacks happen, how to prevent and fight chargebacks more effectively, and what’s in store for the future.
Key takeaways from this year’s report highlight both successes and setbacks:
- Ongoing chargeback prevention efforts are proving effective. The average chargeback-to-transaction ratio decreased 13.3 percent between 2017 and 2018.
- Fraud is a significant and increasing concern. Seventy percent of all disputes were categorized as fraud, which was a 20.4 percent increase from 2017.
- False consumer claims make it difficult to recognize the real reason for disputes. Seventy-seven percent 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 percent), France (632 percent), and New Zealand (299 percent).
“We believe data analysis is an essential part of chargeback management,” said Corey Baggett, CEO of Midigator. “Data-driven decisions produce much better results than guesses and assumptions. But access to relevant, insightful data is hard to come by. With this report, we provide a much-needed benchmark that can be used to not only evaluate individual efforts, but also gauge the industry as a whole.”
Data was collected from a diverse subset of global merchants, representing various industries, billing models, transaction volumes, and dispute management styles. With 24-months’ worth of data, the report carefully examines year-over-year trends in 10 different categories.
To read “The Year in Chargebacks,” click here.
About Midigator: Midigator believes the challenges of running a business should be delivering great products or services, not managing payment risk. That’s why the company became the first to use technology to prevent, fight, and analyze chargebacks, providing an efficient and effective alternative to labor-intensive, manual processes. Midigator’s technology removes the complexity of payment disputes so businesses can get back to business. Features like real-time reporting, labor-saving automation, and in-depth analytics benefit businesses of all sizes in all industries. To learn more, visit Midigator.com.
