Tampa Bay, FL (PRWEB) June 30, 2014
Twenty percent of fraud losses over the last four years were characterized by friendly fraud—a phenomenon that describes when a consumer reports legitimate charges as unauthorized, reports LexisNexis. (1) Due to the resources lost fighting these charges, over half of these charges go undisputed by merchants, according to SecureBuy. (2) eConsumerServices, a third-party service that works to resolve transaction conflicts between consumers and merchants, allows a win-win compromise for both sides of the conflict.
When customers abuse the chargeback process, it results in higher costs for the merchants to continue business operations. Costing approximately $11 billion a year, friendly fraud cannot be ignored by eCommerce merchants. (3) As a method of survival, the merchant passes on these fees to the customer, often in the form of higher shipping and handling costs. Merchants are also starting to require the security codes on the credit card at the time of purchase, to prove physical access to the card as well as ownership.
Many customers do not contact the merchant before requesting the chargebacks, hoping to expedite the process and simply obtain a refund for their unsatisfactory transaction. This process of filing a chargeback has the following steps: (a) the customer contacts their bank to dispute a charge on their bank statement; and (b) the bank then opens a dispute case with the merchant, which often results in a chargeback.
“The chargeback process is one that comes full circle back to the consumer,” said Gary Cardone, CEO of eConsumerServices. “It’s a dispute in which both parties will continue to lose money until some balance is regained.”
In addition to higher shipping costs, friendly fraud is weakening credit card fraud protection. Due to the increased number of chargebacks filed, banks are enforcing more stringent processes to prove illegitimate charges. This could result in a consumer shouldering the liability of a charge that is a fraudulent one. (3)
Since eConsumerServices limits the chargeback fees imposed on eCommerce, merchants can ensure that eCommerce continues to thrive, and customers can continue to make satisfactory online transactions with minimal dispute issues.
eConsumerServices serves to remedy friendly fraud, as they intervene in the dispute process by contacting the merchant, on behalf of the consumer, to resolve any unsatisfactory transactions. This process significantly reduces the number of chargebacks filed, and restores a level of satisfaction equal to both parties.
For more information, visit http://www.econsumerservices.com.
eConsumerServices was initially founded in 2009, but focused overseas in the European market. Within the last 12 months, eConsumerServices has developed a market in the USA, and is picking up speed. eConsumerServices specializes in promptly resolving consumer needs as they relate to eCommerce purchases. The company was developed after its sister company, Chargebacks911, surveyed consumers who had filed chargebacks and discovered that an overwhelming number of merchants’ customers who filed a chargeback dispute went to their banks because the merchants didn’t offer a fast and efficient support option. Customers were looking for a place that would resolve the inquiry. eConsumerServices was created to serve the consumers. Co-founder Monica Eaton-Cardone established eConsumerServices in 2009, as she felt that it was important to have one company for the merchants, and another company for the consumers. With this, the issuers would be kept out of the dispute—when the issuer gets involved in the dispute, it leads to higher costs, which eventually affects the consumers. eConsumerServices is an online service that acts as a mediator between merchants and consumers, helping to resolve transaction disputes. To learn more about eConsumerServices and its services, visit http://www.econsumerservices.com.
1. Reuter, Thad. “E-retailers Face the Threat of So-called ‘friendly Fraud’.“ E-Payments & Security. Internet Retailer, 27 Feb. 2014. Web. 10 June 2014.
2. “SecureBuy—SecureBuy Powered with FICO.” SecureBuy. Magento, n.d. Web. 12 June 2014.
3. Harper, Elizabeth. “‘I Didn’t Buy That’: Friendly Fraud Costs Retailers $11.8 Billion a Year—DailyFinance.” DailyFinance.com. N.p., 20 Mar. 2014. Web. 10 June 2014.