February 17th, 2014 by Elma Jane
Facts about Chargeback
Merchants know chargebacks are bad, but many aren’t aware of simple facts that can help them better understand and guard against fraud accordingly.
Do you know which month is the worst for fraud charge backs?
which transaction amounts are the most likely to be disputed?
or which U.S. states are the biggest offenders?
If not, a Big Data fraud science firm – will help you prepare for a smoother 2014.
Facts you’ll learn:
The most common fraudulent chargeback amount.
The day of the week when chargebacks are most likely to occur.
The time of year charge backs are most likely to occur.
49% of all fraudulent chargebacks happen after 60 days or more from date of purchase.
$1,000 is the most common attempted unauthorized sales amount (followed by $2,500, $2,000, $1,500 and $5,000).
11% of all fraudulent transactions fall under the Merchant category “Code of 7299”.
Services. The word most often found in registered fictitious names for fraudulent merchant accounts is “Services”.
Wednesday Is the day of the week when the most chargebacks (19%) occur.
One-Third of all fraud chargebacks happen in the fall (September to November).
California Republic is the top state registered by fraudulent businesses, accounting for 14% of chargebacks the U.S. total.
Florida, Texas and New York round out the top four states with 12%, 9% and 7% respectively.
Posted in Best Practices for Merchants, Credit card Processing, Credit Card Security, Electronic Payments, Merchant Services Account, Payment Card Industry PCI Security Tagged with: big data, charge backs, chargeback, disputed, fraudulent businesses, fraudulent transactions, guard against fraud, merchant accounts, unauthorized sales
