Chargeback Fraud Is On The Rise

October 17, 2023

The last few years have brought dizzying changes to many things, amongst these, technology and consumer shopping behavior have made unprecedented progress, especially after the COVID  pandemic.

When the pandemic was at its worst, e-commerce saw a boom! As consumers relied on online shopping to acquire groceries, household goods and even clothing. Now, after the pandemic has been declared over, online shopping for groceries is still 70% higher than pre-pandemic numbers.

With this, Card-not-present (CNP) transactions have also increased, bringing with it an increase in dreaded chargeback volumes.

Many businesses traditionally relying on card-present transactions now rely heavily on CNP ones for the first time.

And with this increase, the risk for merchants increases as well.

The adoption rate of alternative payment methods have plateaued, but they still remain at much higher levels than before COVID, and e-commerce is now a big part of consumers’ lives.

In light of this, a new report tracked chargeback habits and trends globally along with the key factors of the increase of said chargebacks: e-commerce and CNP fraud.

If you’re not currently taking a multi-layered approach to help reduce or prevent them, the time to do so is now.


By 2026, it is expected that chargeback numbers across the globe will reach 337 million, 42% more than 2023.

E-commerce retail sales are set to reach $7.3 trillion by 2025, with this increase, the risk of fraud and chargeback grows as well.

CNP fraud across the globe will reach over $28.1 billion by 2026, compared to $20 billion in 2023, this represents a 40% increase.

The difference between the US and Europe: American merchants have been hesitant to adopt 3D Secure (3DS) due to the fear of losing legitimate consumers due to friction at checkout, however, it is important for merchants everywhere to adopt SCA tools to reduce fraud: Europe has seen a stabilization when it comes to fraud due to the firm SCA requirements.

Technology brings with it many wonderful, new ways to pay. However, this brings along more tools for scammers to hit businesses. Having a solid strategy against chargeback is more than necessary moving forward.

Want to learn more? Check out Payments Cards and Mobile’s full write-up here.

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