Fraud Increases as M-Commerce Rises: Partnership of eMerchants With eConsumerServices Offers Reliable Transaction Resolution for Consumers

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With the surge in popularity of merchants joining mobile commerce, the industry is growing at a rate that neither consumers nor merchants can keep up with—leaving room for increased dissatisfaction among consumers with regard to online purchases, which can then result in increasing chargebacks. eConsumerServices advises merchants to partner with consumer mitigation services in an effort to protect online consumers from the arduous chargeback process.

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As mCommerce continues to surge in popularity among merchants, so will the risk that consumer discontent will continue to rise, and many of those consumers will turn to the chargeback system to appease that frustration.

With 66% of merchants now actively supporting mobile transactions, merchants are more susceptible than ever to fraudulent practices—recent reports categorize mobile merchants as those who incur the greatest fraud losses among all merchant segments. (1) Although mCommerce—the electronic commerce conducted on a mobile device—is making groundbreaking revenues in the retail sector, it is constantly evolving. This constant state of change not only makes it more susceptible to fraudulent users intercepting transactions and initiating criminal activity, but can also inhibit the shopping experience for consumers, who may file chargebacks as a result of their dissatisfaction. In the face of these practices, merchants can protect their consumers from the lengthy chargeback process by working with a third-party mitigation service, such as eConsumerServices, which works to resolve transaction conflicts between consumers and merchants.

Much of today’s online shopping has taken to the more convenient avenue of shopping via mobile devices. Statistics from the Mobile Payments & Fraud Survey, conducted by Kount between November 2013 and January 2014, reported that merchants offering a mobile app for online shopping more than doubled from 21 percent to 54 percent. (2) But inexperienced merchants are ill-prepared for the challenges that accompany card-not-present, or online, purchases.

Despite the apparent increasing consumer demand for mobile capability, all merchants wishing to enter the industry of mCommerce should exercise great caution in doing so, as the risks of chargeback disputes rises, per CEO of eConsumerServices, Gary Cardone.

“With the rapid growth that mCommerce is experiencing, a condition is created that allows zero opportunity for standardization,” said Cardone. “Without refinement, this could essentially result in a petri dish for fraudsters and increase the likelihood of transactional mishaps, which would result in unhappy consumers attempting to recoup the associated funds. Excessive chargebacks can cause a merchant to forfeit their business account or even their ability to accept payments from Visa and MasterCard, and reputation loss among consumers is also common.”

Cardone upholds the claim that merchants will likely see a rise in chargebacks, in addition to being inundated with fraud-related losses in revenue, unless they quickly adapt and take extensive measures to protect themselves, as well as their consumers.

As the industry stands now, some consumers are already finding themselves displeased with eCommerce, as their ability to contact merchants directly with an issue is heavily impeded by the lack of personal assistance found in businesses today. Cardone added, “As mCommerce continues to surge in popularity among merchants, so will the risk that consumer discontent will continue to rise, and many of those consumers will turn to the chargeback system to appease that frustration. And although it would be nearly impossible to please every consumer in each transaction, the risks involved can be significantly reduced by engaging the assistance of an impartial mediator with the necessary experience to quickly solve transaction disputes, thereby saving both time and money for parties involved.”

eConsumerServices eliminates the need for merchants to hire and train additional salaried customer service representatives. Their extensive expertise in working to protect the rights of online consumers ensures that both merchants and consumers are represented in the transaction, without resulting in additional chargebacks to either party.

eConsumerServices serves to remedy chargeback disputes because 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 equal satisfaction to both parties.

For more information, visit

About Global Risk Technologies and eConsumerServices:
Global Risk Technologies is most known for their role in payment processing solutions that cater to each side of the value chain: and The firm is headquartered in Tampa Bay, Florida with offices in Ireland and Atlanta. They have approximately 350 employees worldwide and currently manage over 150MM in transactions each month, with clients located in the US and Europe.

eConsumerServices focuses on the cardholder or consumer in order to encourage transactional resolution before it progresses to a chargeback. eConsumerServices is to the B2C (business-to-consumer) sector of Global Risk Technologies’ initiative, in working to realize greater standardization and increased efficiency in the payment space in terms of managing risk and handling chargeback issues. eConsumerServices is an online service that acts as a mediator between merchants and consumers, helping to resolve transaction disputes. For more information, visit

1.    2013 LexisNexis True Cost of Fraud Study: Merchants Struggle against an Onslaught of High-cost Identity Fraud and Online Fraud. United States: Javelin Strategy and Research and LexisNexis Risk Solutions, 2013. LexisNexis, Sept. 2013. Web. 17 July 2014.

2.    “M-commerce Growth Spurs Merchant Fraud Fears.” Mobile Payments Today, 12 Mar. 2014. Web. 17 July 2014.

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