The internet has grown and continues to grow rapidly. People are spending hours and hours per day on the internet doing things such as social media, gaming and communicating with friends and family members. Many people are even turning to the internet to complete their shopping. Shopping is a huge part of internet usage. However, with the increase of online shopper, security and fraud has become a concern. When people shop over the internet, they are copying their credit card information into the online merchant?s website, allowing them to complete a transaction based on that information. This opens the door for hackers and scammers to attempt to steal this information. Fortunately, there are also ways that an online shopper is protected in this type of a situation.
Online shopping is continually growing and is a large portion of the shopping market. Nearly half of digital buyers already know where to look for a product before buying it, 48% of consumers already know which online store they will buy from. What happens, then, when an online transaction will not go through and the consumer is unable to purchase from the store they want?
Chargeback protection is when a credit card company does not recognize a transaction, and thus they charge it back. They are constantly monitoring credit card accounts and if something does not look right, they will simply charge it back, making the transaction null and void. Although this generally protects consumers, it can create a problem when that transaction was actually real and the person is unable to pay of that item. Chargebacks can become troublesome when they continue to occur and the online shopper is unable to purchase the items they want over the internet.
Global E commerce sales generate $931,490 every 30 seconds through desktop sales and $269,683 through mobile devices. Additionally, in 2014, there were $16.31 billion worldwide fraud losses from payment card fraud. Payment card fraud occurs when the fraudulent charge goes through and the credit cards owner files for fraud. Many chargeback credit card companies will then cover the fraudulent charges, offering protection to their customers. Chargeback protection is both for the security of the consumer and for the credit card company.
Chargebacks that become troublesome can be verified through third party companies. There are companies that provide additional verification of online purchases. They thoroughly run the credit cards and the information that is provided. If there is still question, they may contact the credit card owner to verify that the purchase was real. This prevents chargeback protection from occurring, allowing the consumers online order to go through.
Chargeback protection is an important part of the online shopping industry. It is a way for credit card companies to protect themselves and their customers. It constantly monitors for fraudulent charges and it then charges those purchases back, making the transaction not go through. Although this can be beneficial at times, it can be troublesome when the transaction is real. Third party companies provide these credit card companies with additional verification to ensure that the transaction is real and that the appropriate consumer made the purchase. This can increase online shopping satisfaction.