LOS ANGELES, CA--(Marketwired - Dec 1, 2016) - Verifi, Inc., the leading provider of payment and risk management solutions for card-not-present merchants, today announced that their Cardholder Dispute Resolution Network (CDRN) continues to record quarterly growth mitigating chargeback risks for their extensive client list.
CDRN's dispute volume was up by 26% increase over the last quarter and 62% over the same period last year with similar expectations for the fourth quarter. Card Not Present sales during the 2016 holiday shopping season are projected to rise 17% over the previous year's figure and the number of internet users shopping online during Black Friday alone this year is expected to surpass those shopping in-store, with 52% of survey respondents planning to make eCommerce purchases.
Beginning in December and typically running through February, merchants and issuing banks will be flooded with cardholder disputes as a result of friendly fraud/buyer's remorse or heightened levels of true fraud that are a byproduct of the biggest selling season of the year. For many merchants, retaining the profits from this season make or break the merchant's entire year.
CDRN's patented, "closed loop" network is directly integrated with top issuing banks and provides unmatched chargeback protection while avoiding false positives and defects that result in unnecessary costs, increased manual review and lost profits due to over refunding.
Supporting more than 13,000 active accounts for merchants, CDRN has prevented over 3.4 million fraud and non-fraud chargebacks and has been recognized as the Best Chargeback Management Solution the last four consecutive years in addition to Best Chargeback Prevention Service.
"Chargebacks and fraud continue to rise and don't show signs of slowing down anytime soon. For merchants and issuers, the risks and negative impacts will greatly increase this time of year. We have focused on continually expanding our CDRN chargeback protection to help merchants and our issuing bank partners combat this issue with unmatched success rates. We make it easy. Merchants can virtually be live in hours without IT burdens to bolster their risk mitigation to keep more of their profits," said Matthew Katz, CEO of Verifi. "Looking forward, we have some exciting new services to extend the protection we provide our clients and we are actively expanding our US coverage and international presence. In addition to our recent entry into the UK market, numerous additional global markets are planned for the coming year."
According to industry research firm, Aite Group, chargebacks will reach an estimated $5.8 billion for 2016. The Firm further stated that 60 to 70% of chargebacks are the result of fraud. According to Julie Conroy, research director for Aite Group, "Consumers are guilty of gamesmanship... with an increasing population of consumers well aware of their chargeback rights and taking advantage of the issuers' tendency to give them the benefit of the doubt."
The company earlier announced that CDRN experienced a 117% increase in fraud dispute issuer participation along with a 50% increase in issuers supporting non-fraud disputes and is in the process of expanding their award-winning service offerings to further improve the payments eco system for cardholders, merchants and issuers alike. This revolutionary, new service will enable the sharing of order details in real-time between merchants and issuers to resolve billing confusion, reduce friendly fraud and help validate true fraud. By providing a deeper level of data, cardholders can better recall or understand their purchases and avoid filing false cases of fraud or looking to "game the system" that result in lost sales, unnecessary chargebacks and lost profits.
Verifi, an award-winning provider of end-to-end payment protection and management solutions, was founded in 2005 to help merchants effectively manage the payments challenges they face every day. Verifi helps merchants safely process payments, combat fraud, prevent and resolve costly chargebacks, as well as increase billings and keep loyal customers. Our best-in-breed solutions and white glove support are trusted by a wide range of industries from emerging companies to the Fortune 500. Headquartered in Los Angeles, California, we serve more than 13,000 accounts globally. For more information, visit: www.verifi.com.