48% of online retailers said their chargeback rates for fraudulent purchases constituted 0.1% or less of sales, according to a study by the Merchant Risk Council.


48% of online retailers said their chargeback rates for fraudulent purchases constituted 0.1% or less of sales, according to a study by the Merchant Risk Council

According to the study, online fraud rates for merchants are similar to that of physical stores.

Julie Fergerson, co-chairman of the Merchant Risk Council, said: “The numbers show a very positive trend, but fraud still requires vigilance from online retailers. As fraud prevention tools gain widespread use, their effectiveness declines, and fraudsters are always looking for ways to ‘beat the system.’ Most of our members realize this, and 76% of them have either maintained or increased their review staff levels, thus keeping their shoppers safe.” [Source]

According to the study, online merchants reported that the effectiveness of Address Verification System has decreased from 70% to 25% from 2001 to 2005. The use of Address Verification System has increased from 70% to 83% during the same period.

The use of Card Verification Codes has increased from 38% to 73%. According to online merchants, the effectiveness of Card Verification Codes has decreased from 49% to 31%.

For more information on the study, click here.

 

 

 

 

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