Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Kount Launches Inaugural Report on the State of Chargebacks
  • USA - English


News provided by

Dotted Line Communications

Jan 31, 2018, 08:00 ET

Share this article

Share toX

Share this article

Share toX

BOISE, Idaho (PRWEB) January 31, 2018 -- Kount, a leading innovator of solutions for fraud and risk management, and Chargebacks911 today released the 2018 State of Chargebacks Survey, the inaugural report assessing the current state of fraud and chargeback management in card-not-present (CNP) transactions.

The first of its kind to focus on chargebacks, the survey shines a light on the state of fraud within the Card Not Present (CNP) channel, including key facts and figures such as chargebacks, disputes and win rates. More than one thousand respondents, representing organizations of all sizes and industries and across varied geographical areas, participated in the survey, sharing their experiences, insights, and performance related to managing risk and chargebacks for online and mobile commerce.

"Chargebacks within the CNP channel are a growing concern among online merchants," said Brad Wiskirchen, CEO of Kount. "This inaugural report was important for the industry to understand the state of the market today, the current challenges that merchants face, and the fraud technology and tactics that they are deploying to combat chargebacks."

Specific results and findings of the survey include:

Acceptable Fraud and Dispute Organized by Industry

The report found that while most merchants are actively disputing chargebacks (82%), 10 percent are in excessive chargeback programs and almost one in four (24%) state they had no idea what their actual win rate was when it came to those disputes.

While 70 percent of merchants have a target chargeback rate of 50 basis points (0.5%) or less, just 47 percent of organizations reported achieving chargeback rates below this level. What industries have the highest chargeback rates? The survey found that approximately 40 percent of organizations in the Financial Services and Education/Training industries have chargeback rates exceeding one percent (39% and 43%, respectively). Merchants selling digital goods and services are more comfortable maintaining a higher target chargeback rate as well.

  • Nearly 80% of merchants selling only physical goods have target chargeback rates at or below 0.5%
  • More than half of these merchants set their target chargeback rate at or below 0.1%
  • By comparison, less than two-thirds of merchants selling digital goods or services have a target chargeback rate below 1%
  • Only 35% have their goals set at a chargeback rate of less than 0.1%

Organizations in the Event Ticketing, Apparel/Accessories/Jewelry, Home/Kitchen/Pets/Toys and Travel/Entertainment/Leisure industries have the lowest chargeback rates, with at least half of these organizations reporting chargeback rates of 0.5 percent or less.

Success in Disputes

Of the 82 percent of surveyed organizations that reported they are actively disputing chargebacks, one-fifth of merchants are winning less than 15 percent of their dispute cases and more than one-third win less than 30 percent of their disputes.

But some merchants do give up the good fight -- 11 percent of respondents said they do not dispute or re-present any of the chargebacks they receive. Reasons for not doing so included:

  • They don't believe they have a large enough volume of chargebacks to warrant re-presenting them (28%)
  • A lack of resources within the organization (27%)
  • They are discouraged from disputing chargebacks, stating they couldn't win any of their re-presentments when they tried (15%)
  • 16% of respondents did not know why they don't dispute chargebacks

The survey found significant variation in chargeback dispute win rates. When asked about chargeback revenue recovery win rates, 24 percent of the respondents said they did not know what their actual win rate was. The next two most likely responses were at opposite ends of the spectrum, with 19 percent citing a win rate of less than 15 percent, and 18 percent citing a win rate of more than 60 percent.

Chargebacks continue to be a big issue for merchants, especially in Q1 where merchants are likely to see an influx of chargebacks following the busy holiday retail season, due to the typical 60-90-day lag time in chargeback reporting.

Chargebacks' Origins

Nearly half of respondents overall (48%) claimed CNP fraud was their biggest source of chargebacks, followed by friendly fraud (28%), account takeover fraud (7%), and merchant error (4%). Meanwhile, 12 percent of organizations reported that they don't know the cause of the majority of their chargebacks.

  • Approximately 60% of merchants in the Travel/Entertainment/Leisure and Education/Training industries report that CNP fraud is the primary source of their chargebacks
  • More than half of Dating/Social and Digital Download/Streaming organizations acknowledge that most of their chargebacks result from friendly fraud

While the majority of organizations surveyed (70%) operate or do business in the United States, 45 percent of organizations surveyed operate in Western Europe, more than one-third do business in Asia, and more than one-fourth operate in Latin America. The survey found significant differences in regional chargeback distribution across these organizations based on where they operate.

  • More than 20% of merchants doing business in Western Europe say that the majority of their chargebacks originate in that same region, compared to 11% of organizations overall
  • 39% of organizations operating in Asia indicate that the bulk of their chargebacks are originating from the United States, while 16% say that most of their chargebacks are coming from Asia.

Chargeback Challenges

The two most cited challenges with chargebacks were disputing them (59%) and being able to identify friendly fraud (58%). Gripes with disputing chargebacks, a process known as re-presentment, can include low win rates and the operational requirements or burden of conducting chargeback re-presentment. Friendly fraud is another major source of frustration as merchants struggle with how to handle dishonest customers and a payment chargeback system that can often favor cardholders. Other challenges cited by respondents include:

  • Reducing chargeback rates (50%)
  • The balancing act of reducing fraud and chargebacks without negatively impacting sales or causing false positives (42%)
  • The cost of chargebacks (39%)
  • Lack of expertise or strategy with chargeback management (21%)
  • Not having enough resources (21%)

Fraudbusters!

Most of the organizations surveyed (88%) deploy multiple tools or services for fraud and chargeback prevention, with more than three-quarters using three or more fraud fighting features or technologies, and nearly two-thirds using four or more. The most used fraud fighting techniques include:

  • Address Verification Services (AVS) (62%)
  • Card Verification Value (CVV) (62%)
  • Disputing or representing chargebacks (42%)
  • Email verification (42%)
  • Decline/Negative Lists (38%)
  • Velocity Limits (37%)
  • Phone Number Verifications/Reverse Lookup (31%)

The survey also uncovered trends in fraud team compositions, finding that 45 percent of the organizations have two or fewer fraud prevention team members. This is true for only 17 percent of organizations with more than $250 million in online revenue. 59 percent of these high online revenue organizations (250M+) have fraud prevention teams of more than five people.

The full report is available for download here: http://info.kount.com/white-paper/state-of-chargebacks-2018

Kount will also be hosting a webinar on the findings and the state of chargebacks on January 31st at 10:00 a.m. PST/1:00 p.m. EST. To register, visit: http://info.kount.com/webinar/state-of-chargebacks-2018.

Kount employs dozens of proprietary and patented fraud screening technologies-integrated before a transaction occurs-to generate hundreds of data elements per transaction across billions of transactions from over 180 countries to detect fraud and minimize chargebacks.

About Kount
Kount helps businesses boost sales by reducing fraud. Our all-in-one, SaaS platform simplifies fraud detection and helps online businesses accept more orders. Kount's turnkey fraud platform is easy-to-implement and easy-to-use. Kount's proprietary technology reviews billions of data points and provides maximum protection for some of the world's best-known brands. Merchants using Kount can accept more orders from more people in more places than ever before.

For more information about Kount, visit http://www.kount.com.
Kount on Twitter: @KountInc

Nikki Neumann, Dotted Line Communications, +1 (518) 669-6455, [email protected]

Modal title

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.