The Nilson Report states that the losses caused by the global card fraud are increasing. They have been on the rise since 2016 and will continue to grow by 2025. Global card fraud losses are expected to almost double, jumping from $22.8 billion to almost $50 billion. If you’re looking for chargeback insurance providers, just read below.
By the way, Visa has recently introduced its Visa Claims Resolution (VCR), a new global dispute resolution process. All disputes are going to be processed through VCR in April 2018.
Global Card Fraud: What to Expect
The so-called “friendly fraud” or consumer-perpetrated chargeback fraud is anticipated to represent the largest share of the global card fraud losses. For eCommerce merchants, it’s still a never-ending problem. According to the mentioned report, friendly fraud can’t be quantified easily. Also, it’s almost impossible to reduce this type of fraud.
It’s important to note that the losses caused by payment cards due to counterfeit made up three billion US dollars in 2014. They were expected to account for 1.8 billion US dollars in 2018. This is the type of fraud when credit card numbers are being stolen.
This can happen when fraudsters hack a credit card terminal and then copy the victims’ card. By the way, counterfeit fraud is forecast to go down from 3.6 billion US dollars in 2015 to approximately 1.8 billion US dollars in 2018. New EMV (Europay, MasterCard, and Visa) technology is being implemented to protect against this type of fraud.
To make sure you enjoy safe and secure payment processing, turn to reputable chargeback insurance providers. With an expert payment processor dedicated to mitigating chargeback risk and eliminating chargeback fraud, you can fight and prevent payment processing fraud successfully.
Visa’s new Visa Claims Resolution (VCR) initiative aims to help merchants pass through a dispute process in a better way. Particularly:
- Chargeback reason code 75 ─ “Unrecognized Transaction” ─ will be taken out
- Variations between schemes lead to increased potential for error. Relying on closely matching reason codes and interpretations won’t be possible anymore to help identify and decode chargeback claims
- Merchants failing to submit dispute data on time will be charged extra fees
Payment processing fraud and chargebacks are a growing problem all over the world. Thankfully, there are respectable credit card processing companies that can help merchants successfully combat payment processing fraud and reduce chargebacks.
Author Bio: Electronic payments expert, Blair Thomas, co-founded eMerchantBroker. His passions include producing music, and traveling to far off exotic places. eMerchantBroker is America’s No. 1 chargeback insurance providing company, serving both traditional and high-risk merchants.
