Fraud eats up 8% of the average ecommerce merchants revenue stream and 9.7% of revenue among merchants who sell only digital goods. At present, the average ecommerce merchant now gives 21% of its operational costs to fraud management.
Compared to 2016 data, the Exploring the Financial Impact of Fraud in a Digital World report shows that chargeback losses increased by 60% among digital goods merchants and 75% among those merchants selling strictly physical goods. False positives grew by 25% among digital goods merchants and 27% among physical goods merchants.
Vesta Chief Marketing Officer Tom Byrnes concluded that if merchants do not modernize their fraud protocols, they would not be focused on growth or innovation: they will be struggling to stay in business.
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