BRC launches retail chargeback partnership
Written by Hannah McGrath
Retail lobby group the British Retail Consortium (BRC) has joined forces with dispute management and risk mitigation firm Chargebacks911 to help the industry cut down on invalid payment disputes.
The partnership is aimed at educating retailers on steps they can take to cut down on chargebacks, which occur when a consumer disputes a card transaction and secures a refund for the purchase into their account.
Conceived as an anti-fraud and consumer protection measure, consumers are able to apply for the transaction to be voided directly with their bank rather than the merchant, meaning funds are forcibly removed from the retailer’s business bank account.
The collaboration is designed to slow the growth of chargebacks, which both organisations claim are negatively impacting retailer profits.
Research from a joint report stated that UK online transactions grew by 7.5 per cent in the last year alone, while related chargebacks rose by 23 per cent, costing the industry over £100 billion in administrative fees, penalties and valuable goods.
Monica Eaton-Cardone, chief operating officer and co-founder of Chargebacks911, explained: “So far this year, there have been over 140 rule changes surrounding the chargeback dispute process - retailers were already struggling to understand how to handle disputes, but now it’s even more difficult to keep up - and they’re facing penalties and loss of revenue as a result.”
She explained that all parties need to ensure they are up to speed with the latest regulations if the issue is to be tackled.
Andrew Cregan, policy advisor and head of payments at the BRC, noted: “While many retailers implement technologies like mobile commerce, voice commerce and one-click payments to compete with rivals and grow their customer base, without proper procedures in place to handle potential disputes, these payment methods can dramatically increase chargeback rates.”