NEW YORK, Aug. 1 /PRNewswire/ -- While eCommerce fraud is projected tocost businesses $9.25 billion in 2007, the cost of managing fraud actuallyexceeds the cost of fraud itself by as much as 300%. preCharge RiskManagement Solutions, a leading provider of proprietary chargeback andfraud protection services, today announced the release of its 1st AnnualChargeback Report. Based on an independent survey of nearly 2,000 onlinemerchants, the report highlights growing concerns expressed by the vastmajority of participating merchants about the cost of managing online fraudand eCommerce. According to Gwen St. Clair, Vice President of RiskManagement at preCharge, "The basis of the survey was to provide a voice tomerchants in an industry where the only perspective to-date has comeprimarily from third-party processors. This survey was 100%merchant-driven, in an attempt to find out directly from merchants whatthey are experiencing." "eCommerce is a relatively new frontier. While overall growth in theindustry is up and chargeback rates have declined, there's more going onthan meets the eye, according to the merchants surveyed. This is the onlyforum where merchants have been given the opportunity to collectively speaktheir mind, and the results suggest some of the trends are not favorable,"continued St. Clair. "By the very nature of our service, we talk to merchants on a regularbasis, we hear their concerns, but we also see first-hand how these issuescan negatively affect their business. In an attempt to control fraud,merchants are losing revenue and profits - citing decline rates, orderabandonment, a lack of confidence in accepting international transactionsand the increased cost of in-house fraud management as some of the causes,"added Howard Schecter, preCharge Vice President of Sales. The report indicates that consumer eConfidence and average spending percustomer are declining, with no clear way to address them, creating evengreater concern amongst merchants. Merchants clearly expressed a need anddesire for better tools and resources to effectively manage online fraudand eCommerce safely and securely, so both merchants and consumers canrealize the full potential of online commerce. For a copy of the Annual Chargeback Report, or for more informationabout preCharge, visit
preCharge Issues 1st Annual Chargeback Report
August 08, 2007, 1:11 a.m. EDT 2 Min Read
