The Economics of E-Commerce Chargeback Fraud

E-commerce fraud is an ongoing problem for online merchants and credit card companies. It has been growing at twice the rate of e-commerce sales. Identity theft traditionally has been one of the most common sources of e-commerce fraud, but online merchants lately have been suffering more from chargeback fraud, which requires them to absorb the costs of disputed credit card transactions. As phony chargebacks continue to rise, it becomes more difficult than ever to manage losses, including effective ways to prevent and track chargeback costs.

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