Preventing chargebacks is one of the challenges associated with running an eCommerce store. The UK is expected to be the third biggest market for eCommerce in the world in 2021. The growth will be at an average of almost 10% over the next five years, according to WorldPay. Are you a UK merchant interested in WorldPay Zinc? Just read this article to get the information you’re interested in.
UK eCommerce: Chargebacks
According to WorldPay, UK eCommerce will account for £203bn (US$268bn) by 2021. Thus, the country will be listed after only China and the USA in terms of the value of eCommerce transactions.
Chargebacks are one of the most critical issues concerning eCommerce businesses. They’ve been around for over 40 years since the Fair Credit Billing Act was passed. The aim was to protect consumers’ rights.
40 years later, many things have changed. eCommerce, mobility and digital currency are among these changes. These market changes have had a great impact on the retail industry. The industry will further grow with the rise of new technology and the growth of payment options.
Financial Fraud Action UK reports that fraud losses on UK-issued credit cards made up £321.5 million in the first half of 2016. This resulted in a 31% increase from the same period 2015.
Are you interested in WorldPay Zinc? Why not turn to a payment expert UK? A reputable payments specialist can help you get approved for reliable and affordable payment processing services. The true professional in the payments field will offer you free consultations, the most competitive rates, fees, as well as the most honest snapshot of the company at the time of writing.
Merchants Dealing With Chargebacks
The adoption of technology has helped the markets evolve and grow in better ways than ever before. However, the chargeback process is still complicated, especially for merchants. The increase in fraud makes chargebacks affect each of the retail funnels. As a result, profitability is being hurt. Even more, the very buyers that this system aimed to help are being hurt.
Almost 48% of organizations having participated in a survey claim transaction or CNP (online) fraud represent the main source of their chargebacks. 28% state that “friendly fraud” represents the biggest source of chargebacks for them.
Finally, what about banks? Well, since merchants show a higher level of fraud-fighting sophistication and intelligence, and machine learning solutions are being adopted, banks should be encouraged to work directly with merchants to provide resolution to claims rather than silo the communication to the banks and its customers.
What will the result be? It’ll be possible to resolve legitimate claims more easily. Also, all parties in the retail funnel will be able to reduce the negative side effects of chargebacks.
Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards, such as with WorldPay Zinc, at your business. His understanding of the industry has helped thousands of business owners save money and time.