Did you know that E-commerce industry suffered an estimated revenue loss of $6.7 billion due to chargebacks in 2016 out of which 71% ($4.8b) was due to friendly/chargeback fraud. Every dollar of fraud cost E-commerce merchants $2.40 in 2016, up from $2.23 in 2015. Check out our infographic on “E-commerce Fraud and Chargeback” for latest statistics and trends.
Infographic by- Invesp Landing Page Optimization Company
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Estimated average monthly value of Successful Fraud Transaction
| Year | Estimated Value |
| 2013 | $155 |
| 2014 | $114 |
| 2015 | $113 |
| 2016 | $146 |
Top Chargeback Reasons
| Reasons | %age |
| Fraud / No Authorization | 57.9% |
| Cancel Recurring Billing | 18.6% |
| Products / Services | 18.3% |
| Liability Shift | 3.5% |
| Others | 1.7% |
68% of online businesses were anticipating more fraud this year and 62% plan to invest more in fraud prevention
58% of cardholders do not contact the merchant at all – filing the dispute directly with the bank. Only 14% of cardholders contact merchants prior to charging back
40% of consumers who file a fraudulent chargeback will do it again within 60 days and 50% within 90 days.
Credit card chargebacks are rising at a rate of 20% per year, and friendly fraud rose 41% over the last two years
Top Challenges for Merchants to Quickly Distinguish and Confirm Fraud
| Challenge | %age |
| Verification of customer identity | 60% |
| Delay in payment confirmation | 43% |
| Confirmation of package delivery | 44% |
| Address verification | 45% |
| Emergence of new and verified payment methods | 26% |
| Limited ability to reclaim merchandise | 25% |
| Assessment of fraud risk by country/region | 11% |
| Challenges in acceptance of international based payments | 13% |
| Lack of specialized fraud prevention | 15% |
| Excessive manual order reviews | 14% |
