In 2019, Gravity merchants had approximately 15,000 chargebacks, totalling more than $4.5 million.
Nearly one-fifth of that chargeback volume was a result of the EMV liability shift (which put the chargeback burden on businesses without EMV-capable equipment).
Because of the shift, merchants without EMV hardware and software were unable to dispute these chargebacks, and wound up having to pay out around $250,000.
What a waste!
Here are a few simple steps you can follow to decrease your chances of a chargeback:
- Use an EMV-capable device. This provides the most protection against chargebacks because the sensitive data is protected with the most advanced technology from the time the card is inserted all the way to the processor.
- Avoid keying-in transactions. Whenever possible for card-present transactions, you should insert the card into the terminal instead of keying-in the number. That way, card data will be less exposed to fraud. (If you don’t have an EMV-capable device, you should swipe the card whenever possible.)
- Obtain a full billing address. This is important for card-not-present transactions because this information is compared to the cardholders address and could help prevent fraud.
Rhiannon Leonard leads Gravity’s vendor communications program. She writes frequently on payment processing topics.
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