Fraud is a big, scary term that can easily cause merchants to panic. However, if the risk is broken down and analyzed more carefully, merchants will realize there are only three types of fraud they need to worry about.
Gauging the risk and repercussions associated with fraud is challenging. To better understand how the three types of fraud impact a business, it is best to analyze each according to chargeback rates.
Chargeback rates are a reliable measurement tool because the vast majority of a business’s payments are facilitated with a debit or credit card. A recent study revealed 80% of purchases (both in-person and online) were made with payment cards. (more…)