Kount Blog | chargebacks
Blog Against Fraud

Chargebacks Are Just One Aspect of Fraud Costs

Posted on Tuesday, March 21, 2017

Chargebacks are a big deal. They’re a constant source of product loss and costly fees that damage profitability. It’s no wonder eCommerce operations work relentlessly to stop them.

But it’s important to remember that chargebacks are only part of the deal.

Yes, they’re an important component of one of the three ugly heads of fraud. But focusing single-mindedly on fighting chargebacks – or using tools and software that do – may actually cost you money. How? First, a reminder about the three ugly heads of fraud.

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Topics: chargebacks, manual review

5 Strategies to Fight Chargebacks

Posted on Tuesday, March 7, 2017

According to comScore, U.S. online sales – both desktop and mobile eCommerce – grew by double digits in 2016. Unfortunately, card-not-present fraud grew just as fast. In fact, 2016 saw the highest overall amount of eCommerce fraud ever. And 2017 is expected to see even higher eCommerce fraud as EMV and other forces shift fraud to the online realm.

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Topics: chargebacks, machine learning

2 Minutes on Fraud: Episode 3 - “The Chargeback Lag?”

Posted on Tuesday, November 8, 2016

A lag in chargeback reporting can be discretely hidden by record sales. To make matters worse, the chargeback lag means your financial reports will show a distorted picture of your company’s performance. For example, sales you thought you had in December could actually turn out to be ugly losses in February, March, and April. Don Bush, VP of Marketing, Kount, explains the pitfalls of a chargeback lag and the importance of getting in front of this common hazard.

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Topics: chargebacks, 2 minutes on fraud

2 Minutes on Fraud: Episode 1 - "Zero Chargebacks?"

Posted on Tuesday, November 1, 2016

Chargebacks are expensive. They cost your business time and money. But the goal of zero chargebacks might not be the best strategy either. Merchants trying to achieve zero chargebacks are often leaving good sales and frustrated customers in their wake. Don’t use a chainsaw, when you should use a scalpel. For each merchant, there is an optimal chargeback rate, which allows for maximizing sales while mitigating risk. Don Bush, Vice President of Marketing, Kount, explains chargebacks and examples of optimal rates.

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Topics: chargebacks, 2 minutes on fraud

Why 100% Chargeback Guarantees Can Actually Cost You Money

Posted on Friday, October 28, 2016

Like most things that sound too good to be true, 100% Chargeback Guarantees are not quite what they‘re cracked up to be.

They don’t actually prevent 100% of chargebacks and fraud. Rather, they act as a type of insurance policy that reimburses you when you do get hit with chargebacks and fraud.

The chargebacks and fraudulent transactions still occur. The only difference is that you pay per-transaction “insurance premiums” (in effect) to offset those losses. And just like any insurance policy, your situation determines whether or not these make good financial sense.

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Topics: chargebacks, fraud, chargeback guarantee

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Calculating the 9 Deadly Costs of Fraud
What You Don’t Know About Chargebacks