ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

EPA challenges dispute process to mitigate chargebacks and fraud

The Emerging Payments Association (EPA), has released a whitepaper in partnership with Chargebacks911 and Fi911.

Through the publication of this whitepaper, the EPA (which promotes collaboration and innovation across payments) is hoping to shed light on the unprecedented rise in customers claiming ‘double credits’ through chargebacks and alternative avenues, while also providing recommendations on how to improve the customer dispute process for all stakeholders in the payments value chain.

 

Jane Jee, chair at Kompli-Global and Project Financial Crime leader at the EPA, said: “This whitepaper emphasises that, yet again, appropriate data sharing and collaboration are key to preventing fraudulent duplicate claims. We hope that the recommendations will be studied by the card schemes and the regulators and that action will be taken to increase efficiency and prevent fraud in this area.”

 

Traditionally, customer disputes and chargebacks have rarely received the focus and coverage they deserve, however one tier 1 debit and credit card issuer reported the number of non-fraud dispute cases increased by 333%.

 

Protections associated with card payments were scarcely fully understood outside of a small group of specialists until the Covid-19 pandemic forced holidays, flights, hotels, concerts, theatres, and entertainment events into cancellation and postponement in 2020.

 

On average, cases of ‘double credits’, where a customer is refunded through a chargeback claim and an alternative avenue, increased by 15% to 20% in 2020.

 

The surge forced issuers to bring in more resources and grow their customer dispute teams, while the Financial Ombudsman Service (FOS) has been forced to investigate over 10,000 customer disputes since March 2020.

Between January and February 2021, the EPA conducted extensive primary research through detailed stakeholder interviews on ‘double credits’.

 

Interviewees included over 25 subject matter experts, as well as representatives of international payment networks, card issuers of all sizes, merchant acquirers, specialist technology providers, merchants, and trade associations.

 

A key area of focus was investigating whether customers were receiving ‘double credits’ for disputed transactions, as well as whether there are cases of deliberate financial fraud, as criminals become increasingly aware of how to manipulate the dispute process.

 

The report also seeks to identify best practices and makes 10 key recommendations with a view to improving efficiencies in managing and mitigating future chargebacks.

 

The recommendations included: Improving communications and collaboration across all stakeholders, establishing a customer dispute working group, stronger guidelines for paying credits and increased data sharing.

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

PSR publishes five-year strategy for improved payments market

PSR publishes five-year strategy for improved payments market

Clearpay’s parent company records 110% profit growth

Clearpay’s parent company records 110% profit growth

Klarna records year-on-year operating income increase

Klarna records year-on-year operating income increase

Upcoming events

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group