Category: Regulations & Security

These stories, posts and articles include legal hearings, criminal procedures, governmental approvals, societal norms, and other universal orders…

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Google updates focus on the role of CRO in achieving impressive ROI

Post author By Editor
Post date June 1, 2023
No Comments on Google updates focus on the role of CRO in achieving impressive ROI

Google continuously modifies its algorithms to provide searchers with the most relevant content. In March 2023, Google rolled out its Core Update, which is one of the most significant updates in recent years. It continually adjusts its search engine ranking system and user interface, averaging 12 changes per day, keeping digital marketers on their toes.

This algorithm update by Google focuses on user experience and penalizes inadequate websites, meaning websites with low-quality duplicated, and irrelevant content, poor user experience, and slow navigation will have lower rankings. Moreover, with the increasing use of mobile devices for internet browsing, the update has strongly emphasized mobile optimization, resulting in penalization for websites that are not mobile-friendly. Experts say Conversion Rate Optimization (CRO) is a powerful strategy that not only supports but also amplifies all marketing efforts.

“Marketing opportunities live in Conversion Rate Optimization more than uncasing an algorithm. Companies should constantly be working to improve the customer experience; this will never change, no matter what Google does. Digital marketing strategies that focus on the fundamentals of driving website traffic, improving conversion rate optimization, and delivering an outstanding customer experience will see steady market gains regardless of what changes Google makes to their algorithm,” says Derek Chew, CEO of Fullmoon Digital Marketing.

Conversion Rate Optimization (CRO) is about employing strategies that steadily and systematically boost customer engagement with a website, such as clicking a banner ad, filling out a form, or subscribing to a newsletter, to increase the likelihood of repeat visits or business.

It helps businesses analyze and segment their users to direct them toward purchasing the products or services that would best cater to their requirements. This leads to an increase in repeat customers and a greater overall value per customer across the entire product experience.

While about 67% of companies globally don’t have a properly structured CRO strategy, it is important to note that businesses implementing CRO get an average ROI of 223%.

“In the wake of Google’s core updates, which prioritize user experience and relevance in search results, CRO has become even more important for digital marketing strategies. By improving the user experience and increasing conversions, businesses can improve their search engine rankings and increase their revenue and ROI,” notes Chew.

About Fullmoon Digital

Fullmoon Digital, founded by Derek Chew, a former early Yahoo! employee, is one of the few 100% independent digital marketing agencies in the United States. The firm is cross-functional, with deep experience in media planning and buying, digital consultancy, SEO, digital strategy, programmatic, analytics, performance marketing, paid media, social advertising, and creative. They push the envelope of what is possible in terms of marketing and technology, all the while providing best-in-class digital marketing service to their “pack” of clients. For more information, please visit www.fullmoondigital.com.

Business Lifestyle Regulations & Security

AM Best assigns credit ratings to Somerset Reinsurance Company

Post author By Michelle Dryden
Post date May 30, 2023
No Comments on AM Best assigns credit ratings to Somerset Reinsurance Company

OLDWICK, N.J. — (BUSINESS WIRE) — AM Best has assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) to Somerset Reinsurance Company (SRC) (Orlando, FL). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect SRC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

SRC is a startup reinsurance company; however, this subsidiary of Somerset Reinsurance Ltd (Somerset Re Ltd.) (Bermuda) is expected to rely on its parent for services as it expands its business profile. To manage its business growth and regulatory capital requirements, SRC is expected to receive capital support over its planned growth period as needed. That planned growth is moderately aggressive in the early years of expansion, where the company is expected to seek reinsurance opportunities for products on the low to moderate risk continuum. The management team has deep industry expertise and is expected to leverage its use of direct channels, brokers and strategic partners to garner its new business opportunities and its U.S. domicile should open up more domestic-sourced business in its target market.

The ratings are also afforded one notch of lift off of Somerset Re Ltd. The addition of SRC adds the Somerset Re Group brand flexibility to conduct business in the U.S. insurance market. AM Best also expects SRC’s operating capabilities to be fully integrated for non-underwriting activities and co-sourced with Somerset Re Ltd. for external functions as well.

The stable outlooks reflect AM Best’s expectation that SRC will build upon its projected planned growth of reinsurance solutions to its targeted market, while prudently managing its assets and liabilities, as well as its risk-based capital as business is added.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Contacts

Wayne Kaminski
Senior Financial Analyst
+1 908 439 2200, ext. 5061
wayne.kaminski@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Michael Porcelli
Senior Director
+1 908 439 2200, ext. 5548
michael.porcelli@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com

Tags Business, New Jersey

Economics Healthcare Regulations & Security

Hagens Berman: Settlement worth in excess of $500 million reached in insulin pricing class-action lawsuit

Post author By Michelle Dryden
Post date May 29, 2023
No Comments on Hagens Berman: Settlement worth in excess of $500 million reached in insulin pricing class-action lawsuit

Attorneys representing individuals living with diabetes announce class-action settlement bringing four years of insulin at a reduced price to those who pay out-of-pocket, among other benefits

NEWARK, N.J. — (BUSINESS WIRE) — $LLY #T1 — Attorneys at Hagens Berman and Carella Byrne Cecchi Olstein Brody & Agnello today announced a settlement with insulin-maker Eli Lilly worth more than $500 million, culminating a class-action lawsuit on behalf of insulin purchasers alleging systematic overpricing of insulin.

“This settlement will bring immense, forward-looking relief, especially for those who are underinsured or paying with co-insurance – those most in need of assistance paying for the medications they need to live,” said Steve Berman, managing partner and co-founder of Hagens Berman and court-appointed co-lead counsel representing insulin purchasers in the lawsuit. “Those paying out-of-pocket for insulin will receive four years of insulin at a reduced price under the settlement.”

“Our experts calculate this will save these consumers $500 million in payments for their insulin over the four-year period,” Berman added.

Hagens Berman and Carella Byrne filed the first-of-its-kind lawsuit in 2017 in the U.S. District Court for the District of New Jersey. The class action details several accounts from patients resorting to extreme measures to survive rising insulin prices, including starving themselves to control their blood sugar levels, intentionally slipping into diabetic ketoacidosis to receive insulin samples from hospital emergency rooms, under-dosing insulin, and taking expired insulin.

“We are incredibly pleased to culminate this important case and over six years of hard-fought litigation on behalf of millions of individuals who rely on insulin every day,” said James Cecchi of Carella Byne, co-lead counsel representing the class. “We believe this settlement will have a positive impact on the daily lives of millions of Americans living with diabetes.”

Benefits Under the Insulin Pricing Settlement

The settlement for insulin purchasers includes immense benefits for those most harmed by prohibitively high prices – cash payers, as well as the underinsured and those paying through co-insurance.

Forward-Looking Benefits: Eli Lilly will provide comprehensive affordability solutions to insulin purchasers through a four-year plan that stipulates no one will pay more than $35 out-of-pocket monthly for insulin.
Settlement Funds: For those not eligible for the first tier of relief, a $13.5 million settlement fund will be established for the class. If any amount remains unclaimed, remaining funds will be redistributed to claimants, so that funds are rightfully delivered to the class, for up to three times their claimed losses.According to settlement documents, “Eligible Settlement Claimants can receive cash payments based on their purchases of Lilly Insulin Products during the Settlement Class Period to be calculated based on a formula set by Plaintiffs and the approved plan of allocation.”

The process for submitting a settlement claim is designed to be as simple and convenient as possible, and the settlement claim form will be available on the settlement website and can be submitted electronically once the settlement has been approved by the court.

Immediately following preliminary approval of the settlement agreement, plaintiffs plan to serve subpoenas on the six largest pharmacy benefit manufacturers and seven largest national retail pharmacy chains in the United States to obtain transactional data. Settlement documents state that most settlement claims will be verifiable through this transactional data without requiring class members to submit documentation.

Class members will also be notified directly based on this available information, and additional targeted ads will be used to ensure all eligible are aware and notified of their benefits.

The class includes anyone in the U.S. who paid any portion of the purchase price for any Lilly Insulin Product, for themselves or on behalf of any family member or dependent, no matter how they paid for it, since Jan. 1, 2009, to the date of entry of the final approval order of the settlement. The settlement references a list price, Average Wholesale Price, and Wholesale Acquisition Cost or Price. Insulin purchased exclusively through Medicaid is excluded.

During the lawsuit’s six years, the parties saw multiple rounds of motion to dismiss briefing, three amended complaints and extensive discovery, including more than 60 depositions of plaintiffs and defendants’ employees.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation law firm with a tenacious drive for achieving real results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm’s determination has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

About Carella Byne

Carella Byrne is one of the leading law firms in the New Jersey – New York metropolitan area, serving a diverse clientele ranging from small businesses to Fortune 500 corporations. Carella Byrne has led – or been part of the leadership team – in many of the nation’s most complex and important consumer class actions affecting consumer rights. More about the law firm and its successes can be found at www.carellabyrne.com.

Contacts

Ash Klann

pr@hbsslaw.com
206-268-9363

Tags Business, New Jersey

Art & Life Business Foodies/Tastylicious Healthcare Lifestyle Regulations & Security Science

Hu Products announces allergy alert on undeclared tree nuts

Post author By Editor
Post date May 28, 2023
No Comments on Hu Products announces allergy alert on undeclared tree nuts

AUSTIN, TX – Hu Products on May 17, announced a voluntary recall in the United States of a single production lot of Vanilla Crunch Dark Chocolate Bar product (2.1 oz bar) because some packages may potentially contain undeclared hazelnut, cashew, and/or almond that were inadvertently added to the product during manufacturing. People who are sensitive or have allergies to hazelnut, cashew, and/or almond could be at risk of a serious or life-threatening allergic reaction if they consume this product.

This recall is limited to one lot code (L2343C) of the Hu Vanilla Crunch Dark Chocolate Bar (2.1 oz. bar), which was sold nationwide in retail stores and online in the United States. No other Hu products are affected by this recall.

A picture of the consumer package label is shown below.

The product being recalled is the following:

*Product Description*	*Item UPC*	*Lot code & Best by date* (found in black box on the back of packaging)
Vanilla Crunch Dark Chocolate Bar	850180006206	L2343C – 12/09/2024

There have been no adverse events reported to Hu Products to date in connection with this product to date.

Healthcare Lifestyle Regulations & Security Technology Travel & Leisure

CDC and ATSDR staff begin next steps in ACE investigation in East Palestine, Ohio

Post author By Editor
Post date May 28, 2023
No Comments on CDC and ATSDR staff begin next steps in ACE investigation in East Palestine, Ohio

ATLANTA — The Centers for Disease Control and Prevention (CDC) and Agency for Toxic Substances and Disease Registry (ATSDR) are preparing for the next phase of the Assessment of Chemical Exposure (ACE) investigation to assess the health impacts of the Feb. 3 train derailment that occurred in East Palestine, Ohio.

Last week, CDC and ATSDR will shift staff from the field to complete data analysis of the ACE investigation. CDC and ATSDR will continue to support the health departments in Ohio and Pennsylvania to address the public health needs of the region.

CDC and ATSDR have been providing technical assistance to local, state and federal partners from the beginning of the emergency event. On Feb. 17, CDC and ATSDR staff began arriving in East Palestine and surrounding communities to assess the public health impact of the train derailment, among other activities. CDC and ATSDR collaborated with local, state and federal partners to conduct an ACE investigation of impacted communities in both Ohio and Pennsylvania.

CDC, ATSDR, and our local, state and federal partners also launched a responder component of the ACE survey to collect information about the health of people who responded to the train derailment incident. This component allows responders to provide information about their unique exposures, experiences, and concerns. ACE investigations are rapid epidemiological assessments used to assess the impact of a chemical release on individuals as well as the community.

While CDC and ATSDR staff will be returning from the field, the ACE survey will remain online and data collection had continued until March 31. Over the two months, CDC and ATSDR had worked with the health departments to analyze data and share results. These results can be used by the states to help inform public health recommendations and lessons learned. CDC and ATSDR will continue to respond to requests for remote technical assistance for as long as needed.

Business Lifestyle Regulations & Security

AM Best places Credit Ratings of Encova Life Insurance Company under review with positive implications

Post author By Michelle Dryden
Post date May 27, 2023
No Comments on AM Best places Credit Ratings of Encova Life Insurance Company under review with positive implications

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Encova Life Insurance Company (Encova Life) (Columbus, OH).

This follows the May 22, 2023 announcement by Pan-American Life Insurance Company (PALIC) that it has entered into an agreement to acquire Encova Life and merge it into PALIC. The under review with positive implications status reflects the potential benefits Encova Life would receive from the acquisition. According to the announcement, all Encova Life policies will be assumed by PALIC following the merger. The acquisition is pending regulatory approvals and expected to close in late 2023 or early 2024. These Credit Ratings will remain under review until the close of the transaction and AM Best’s review of post-transaction details.

Encova Life is a wholly owned subsidiary of Encova Mutual Insurance Group, Inc., a mutual holding company whose principal operations comprise the property-casualty insurance operations of the Encova Mutual Insurance Group, with its members currently having an FSR of A (Excellent) and a Long-Term ICR of “a” (Excellent) with stable outlooks.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

Contacts

Joni Cerbone
Senior Financial Analyst
+1 908 439 2200, ext. 5726
joni.cerbone@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Alan Murray
Associate Director
+1 908 439 2200, ext. 5535
alan.murray@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com

Tags Business, New Jersey

Business Culture Economics Foodies/Tastylicious Lifestyle Local News Regulations & Security Science

LiDestri Foods recalls 24-ounce jars of Wegman’s Italian Classics Diavolo pasta sauce

Post author By Editor
Post date May 26, 2023
No Comments on LiDestri Foods recalls 24-ounce jars of Wegman’s Italian Classics Diavolo pasta sauce

LiDestri Foods has been recalling 24-ounce jars of Wegman’s Italian Classics Diavolo pasta sauce, because it may contain undeclared fish (anchovy).

People who have an allergy or severe sensitivity to anchovy run the risk of serious or life-threatening allergic reaction if they consume these products.

The Diavolo pasta sauce was sold at Wegman’s grocery stores in Delaware, District of Columbia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, and Virginia between April 3, 2023 and May 16, 2023.

The recall was initiated after it was discovered via consumer complaint that the Wegman’s Italian Classics Diavolo Pasta Sauce containing anchovies was distributed in packaging that did not reveal the presence of anchovies. Subsequent investigation indicates the problem was caused by a temporary breakdown in LiDestri Foods’ packaging processes.

Consumers who have purchased Wegmans Italian Classics Diavolo pasta sauce with a March 31, 2025 expiration date and code F0589 are urged to return it to the place of purchase for a full refund.

The product can be identified as a mason jar with red pasta sauce, called Diavolo. The only expiration date affected is March 31, 2025, with the code F0589: UPC 077890222409; Jar Code BEST BY 03/31/25 F0589

Consumers with questions may contact Wegmans Food Markets at 1-855-934-3663, Monday through Friday, from 8:00 a.m. – 7:00 p.m. EST, or Saturday and Sunday, from 8:00 a.m. – 5:00 p.m. EST

No illnesses have been reported to date.

Business Lifestyle Regulations & Security

AM Best revises outlooks to negative for Germania Farm Mutual Insurance Association and core subsidiaries; assigns credit ratings to Germania Property & Casualty Insurance Company

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Germania Farm Mutual Insurance Association and its subsidiaries: Germania Fire & Casualty Company, Germania Insurance Company and Germania Select Insurance Company. Collectively, these companies comprise Germania Mutual Group (Germania). Concurrently, AM Best has assigned an FSR of B++ (Good) and a Long-Term ICR of “bbb+” (Good) to Germania Property & Casualty Insurance Company (GPC), a wholly owned subsidiary of Germania Farm Mutual Insurance Association. The outlook assigned to the FSR is stable while the outlook assigned to the Long-Term ICR is negative.

Additionally, AM Best has revised the Long-Term ICR outlook to negative from stable and affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb+” (Good) of Germania Life InsuranceCompany (Germania Life). The outlook of the FSR is stable. All companies are domiciled in Brenham, TX.

The Credit Ratings (ratings) of Germania reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlooks consider the declining trend in Germania’s operating results over recent years. These trends arose due to pricing inadequacies in its core lines of business following severe catastrophic weather activity, along with increased costs for reinsurance and higher severity for auto due to inflation. As a result, the group’s combined ratio has been above breakeven in each of the past two years, highly influenced by excessive premium/policy growth as reinsurance prices increase. Ultimately, the deterioration has caused Germania’s five-year average operating return measures to lag the private passenger auto and homeowners’ industry composite and has begun to shift the group away from other carriers assessed as adequate. In the absence of improvement, the ratings are likely to be downgraded.

Despite the relative loss of surplus in recent years, Germania’s balance sheet continues to be supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and comprehensive reinsurance program. The business profile assessment reflects the group’s geographic and product concentration of primarily residential risks in a catastrophe-prone state. Lastly, Germania’s ERM practices remain appropriate and in line with its risk profile, with a focus on exposure management, pursuing rate adequacy, and aggressive re-underwriting of its current book.

The ratings of GPC reflect its balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate ERM.

GPC’s adequate operating performance assessment is primarily based on the company’s ability to execute its strategic business plan and meet expected operating results throughout the three-year forecast period. The company’s business profile is assessed as limited, reflecting the company’s position as a repurposed company primarily concentrated on writing select homeowners’ insurance in Texas.

The ratings reflect Germania Life’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate ERM.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

Contacts

Michael Venezia
Senior Financial Analyst
+1 908 439 2200, ext. 5034
michael.venezia@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Alan Murray
Associate Director
+1 908 439 2200, ext. 5535
alan.murray@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com

Tags Business, New Jersey

Business Lifestyle Regulations & Security

AM Best Places Credit Ratings of Validus Reinsurance, Ltd. and subsidiary under review with developing implications; comments on credit ratings of American International Group, Inc. and its other property/casualty subsidiaries

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — AM Best has placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of Validus Reinsurance, Ltd. (Validus Re) (Hamilton, Bermuda) and Validus Reinsurance (Switzerland) Ltd. (Zurich, Switzerland), a subsidiary of Validus Holdings, Ltd. (Validus) (Hamilton, Bermuda) [NYSE:VR].

Concurrently, AM Best has commented that the Credit Ratings (ratings) of the remaining members of American International Group, Inc. (AIG) remain unchanged.

These rating actions follow the recently announced definitive agreement whereby AIG will sell Validus Re and Validus, including AlphaCat Managers Ltd. and the Talbot Treaty reinsurance business, to RenaissanceRe Holdings Ltd. (RenaissanceRe) [NYSE: RNR] for $2.99 billion, consisting of $2.74 billion in cash and $250 million in RenaissanceRe common shares. AIG is also expected to receive all capital in excess of $2.1 billion of shareholders’ equity of Validus Re and achieve future capital synergies of approximately $400 million from the recapture of reserves due to transferring the Validus Re balance sheet to RenaissanceRe, which together, as of Dec. 31, 2022, was over $1.5 billion. This brings the total estimated transaction value to more than $4.5 billion.

The transaction is expected to close in fourth-quarter 2023, subject to regulatory approvals and other customary closing conditions. Subsequent to the closing, AIG expects to make significant investments in RenaissanceRe’s DaVinci Reinsurance Ltd. and Fontana Reinsurance Ltd. managed funds through AIG’s investment portfolio.

The ratings will remain under review until the deal closes and AM Best completes its evaluation of organizational changes and strategic positioning within the new structure. The under review status may be updated in the interim period if new facts and circumstances present themselves.

Contacts

Raymond Thomson, CPCU, ARe, ARM
Associate Director
+1 908 439 2200, ext. 5621
raymond.thomson@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Erik Miller, CFA
Director
+1 908 439 2200, ext. 5187
erik.miller@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com

Tags Business, New Jersey

Business Economics Lifestyle Regulations & Security

Chargeback triangle: There is hidden threat for merchants

Post author By Editor
Post date May 25, 2023
No Comments on Chargeback triangle: There is hidden threat for merchants

In 2022, the loss to consumers due to fraud ticked up to $8.8 billion, an increase of 44% from 2021.

Chargebacks are a powerful tool for safeguarding consumers against credit card fraud, erroneous charges, or even poor-quality products and services. In chargeback disputes, the cardholder’s bank usually backs them up and refunds the charge amount from the merchant’s bank.

Banks and credit card companies have made it exceptionally simple for customers to dispute a charge, often to the point where it is quicker for them to contact their bank rather than the merchant. It has been observed that, following a chargeback, the purchasing behavior of consumers toward a merchant goes down by as much as 62%. However, it is important to note that more than 80% of chargebacks can be avoided if the customer first contacts the merchant.

“Banks are making it a lot easier for customers to dispute charges; they want to keep their customers happy, and with the growth of dispute inquiries, an increasingly competitive landscape, and the ever-evolving demands of their cardholders, banks have no choice but to make the process as easy as possible for their customers,” states Monica Eaton, CEO of Chargebacks911, the world’s first chargeback mitigation and prevention service provider.

Yet, “the Chargeback Triangle”, involving the consumer, merchant, and bank is a loophole that is often exploited by consumers.

Reports suggest that 86% of chargebacks are probable “friendly fraud” cases. Friendly fraud occurs when a buyer fraudulently tries to initiate a chargeback with their bank or card issuer by falsely claiming that the product was defective, not delivered, or unauthorized, instead of directly requesting a refund from the merchant.

In 2022, the average value of a chargeback was $192.53, with 23% of consumers admitting to committing friendly fraud. Merchants are now expected to pay over $100 billion in chargebacks in 2023.

Chargeback remediation can reverse the downward trend. Chargeback management solutions provide automated tools to reduce the time and resources required to respond to chargebacks, along with the help of agnostic solutions that assist merchants and financial institutions to standardize and automate otherwise manual processes every step of the way.

“Online retailers must make it easier for customers to reach out to their business by providing contact information that is easily visible to their customers. They must provide personal and exceptional customer service, and ensure that all return policies, shipping costs, fees, and sales tax are explained up-front and easily understood,” advises Eaton.

Monica Eaton, CEO of Chargebacks911 can speak on the following:

What are the factors leading to an increase in friendly fraud and chargebacks?
How are banks contributing to the increase in friendly fraud?
How do chargebacks affect merchants?
How can chargeback management solutions help merchants and financial institutions?

About Chargebacks911
Chargebacks911 is the global leader in chargeback prevention and remediation technology. As a provider or supplier to financial technology companies, Chargebacks911 helps safeguard more than 2.4 billion transactions per year on behalf of clients in 87 countries around the world. For details on Chargebacks911’s comprehensive chargeback management solutions, visit https://chargebacks911.com