Merchants who do not get wind of this critical policy update will face a significant jolt of surprise when dealing with PayPal disputes. — PayPal just announced a new PayPal merchant policies update, which it says is a way of “encouraging merchants to engage with consumers directly and proactively to resolve disputes, consistent with PayPal’s merchant policies and best practices.” According to a PayPal newsroom statement, the PayPal merchant policy update is replacing chargeback…

One of the many unintended side-effects of government-instituted procedures to combat the spread of COVID-19 is the tremendous spike in chargebacks and disputes. Disruptions in the global supply chain and deliveries, staff shortages during the lockdown, and negative cash flow have resulted in significant delays, and sometimes total failure, in delivering goods and services. No industry is exempted from the economic shocks of the pandemic. According to Statista, the global Gross Domestic Product…

Buy Now, Pay Later (BNPL) is booming globally but rising chargeback fraud presents significant drawback. BNPL, a system that allows customers to access ‘instant credit’ at the point of sale, is progressively gaining steam in the industry across various eCommerce verticals. With BNPL, the merchant can still get the money…

A chargeback is a forceful payment reversal by the bank. Banks and credit card companies apply chargebacks when a cardholder disputes a transaction with them. The chargeback mechanism empowers the bank or card issuer to deduct the disputed charge from the merchant’s account and remit it back to the cardholder…

Here are some numbers that might be of interest: The subscription economy has seen an uptick of nearly 6x (over 435%) over the last 9 years, according to Zuora. 78% of international adults currently opt into subscription billing as compared to 71% in 2018. And 75% believe that in the…

Visa Dispute Monitoring Program (VDMP for short) is how Visa scrutinizes merchants to identify vendors that attract abnormal payment disputes. It’s established to ferret out culprits participating in merchant fraud, allow genuine vendors to handle their chargebacks, safeguard cardholders, and preserve the Visa brand. Aside from Visa, Banks also use…

Shopify is usually one of the names that come to mind when people talk about the ideal eCommerce company today. And with good reason too. Analysts record that Shopify currently has the most prominent eCommerce platform market share in the USA, with more than one in four (29%) online businesses…

First, some numbers: 30% — the volume of chargebacks that result from transactions made with a stolen card. 26% — the volume of chargebacks that result from undelivered orders. 15% — the volume of chargebacks initiated by cardholders due to retailers shipping the wrong product. 8% — the amount of…

Despite the fantastic benefits, credit card transactions are fraught with risks. There’s the issue of fraud, and then you have customer disputes. Research shows that, on average, 2.59% of all credit card transactions end up in a chargeback. And being one of the major payment gateways, Shopify is not exempt…