Fintech Expert Says Retailers Need to Get Tough With Customer Chargebacks

As consumer chargebacks continue to soar, fintech executive, entrepreneur and author Monica Eaton-Cardone is urging retailers and brands to fight back — especially in regard to “friendly fraud” — by taking a more disciplined business approach and avoiding taking on a “concierge role.” Eaton-Cardone, who cofounded Chargebacks911, eConsumer Services and Global Risk Technologies, said chargebacks are hurting both merchants and consumers and companies need to have in place safeguarded payments practices. “The rate of expected losses for retailers due to card-not-present fraud is expected to amount to $130 billion by 2023, as credit card issuers and retailers are desperate to provide the consumer with a seamless customer service experience,” Eaton-Cardone said, while cautioning merchants “to stop their ‘blind-eye’ approach.” “Credit card issuers must exert diligent investigations and adjunction when consumers demand chargebacks, instead of catering to them as a concierge service,” Eaton-Cardone said, adding that without this exertion, “consumer bad behavior will increase, disowning legitimate purchases on the e-commerce merchants and a personal consequence for the consumer — an exponential increase in prices for products and services.” Looking at the statistics, Eaton-Cardone found that amid the total amount of illegitimate chargebacks that occur in the market, just 18 percent of the 80 percent of

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