Six out of 10 survey respondents (including 55% with a CFO title) had seen both the number and dollar amount of credit card chargebacks increase since the introduction of EMV chip cards. Furthermore, 64% of those surveyed (including 62% of CFO-titled respondents) measured increases in both the number and dollar amount of credit card chargebacks specifically related to “card not present” (CNP) transactions since the introduction of EMV chip cards.
The findings come from a new report “Managing the Risk of Fraud: The View from Corporate Finance,” a new report by Vesta.
As merchants have upgraded in-store payment security measures, fraudsters have flocked to CNP channels—online, mobile and elsewhere—with stolen payment credentials and seriously harmed merchants’ growth potential.
About 43% of corporate finance executives (or 33% of CFOs) confirmed that fraud risk has interfered with corporate efforts to develop new products or services or even caused business model changes. Perhaps more challenging, 43% (or 36% of CFOs) reported fraud risk interfering with corporate budget allocation or revenue projections. As such, 56% anticipate their fraud detection and assessment strategies to change in the next two years.
Vesta says fraud risks are distracting merchants from focusing on what they do best: innovating and satisfying customers to boost revenue and grow their businesses.