Two industry leaders in payments recently retired from Bank of America and Apply Pay, to move to Chargebacks911 to tackle chargebacks and innovate it across the payment and fintech industries.
Banks have become unwittingly complicit in friendly fraud.
As once a solution to a growing problem, banks and financial institutions have made the chargeback process more convenient for consumers, who now find it more convenient and faster to file a dispute with their banks than to contact the merchant. Wells Fargo settles disputes within 10 working days, while Bank of America has a 30-day dispute settlement policy.
But industry leaders say financial institutions cannot continue these enormous write-offs.
New solutions needed to prevent chargebacks and increase merchants’ win rates.
Considering this, Monica Eaton, CEO of Chargebacks911, the first global company fully dedicated to developing the most effective strategies for helping businesses manage disputes, mitigating chargeback risk, and eliminating chargeback fraud, announced today, Tuesday, June 6, the appointment of payments industry leaders Guy Harris as its Chairman of the board, and Eric M. Hoffman as President of Interbank Solutions and board member.
Guy Harris is the former Bank of America merchant services titan and 2021 Electronic Transactions Association (ETA) president, while Eric M. Hoffman is the current ETA president and a previous Apple executive.
“With an increase in transactions, usage, and reliance, comes consumer and merchant protection through chargeback services. E-commerce has gone deeper into convenience and shifting to different merchant categories,” states Hoffman.
“Settlements now happen by both financial institutions and merchants. Financial institutions are in urgent need of information to make informative payment dispute decisions,” affirms Harris.
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- Global e-commerce is expected to account for over 20% of all retail sales in 2023. however, chargeback fraud is anticipated to cost merchants an estimated $125 billion globally.
- 50% of merchants cite dealing with the costs they incur from chargebacks as their biggest concern.
- “Friendly fraud” constitutes 86% of all chargebacks. Although 28% of merchants believe chargeback detection tools help them control the dispute ratio, preventing and remediating “friendly fraud” remains a huge challenge for merchants who use ineffective fraud detection tools that do not provide an integrated view of this illicit activity.
- In fact, merchants spend 10% of their e-commerce revenue on managing such fraud.