Chargeback Capitals: U.S. Cities Merchants Should Beware of Heading into Holidays

Nov. 5, 2015

Chargeback Capitals: U.S. Cities Merchants Should Beware of Heading into Holidays With Black Friday, the traditional kickoff to the holiday shopping season in the U.S., only three weeks away, merchants are preparing for an avalanche of online transactions and the increase in fraud and chargebacks that come with it. Tampa-based chargeback-management firm Chargebacks911 has released a list of U.S. cities on the East Coast its analysis has identified as having the highest chargeback rates (it will examine other regions in the run up to Black Friday). New York led the pack with Port Washington’s chargeback rate topping the list at 17 percent. The company found 15 percent of transactions originating in Astoria, N.Y. were charged back followed by Plainview, N.Y. (13 percent) and a host of cities and towns at 12 percent (Danvers, Mass.; Carteret, N.J.; Point Pleasant Beach, N.J.; East Elmhurst, N.Y.; Massapequa, N.Y.; Albany, N.Y.; and Philadelphia, Pa.)

“Online merchants should pay close attention to transaction disputes as part of their risk management strategy, because high chargeback rates are frequently a sign of retail fraud,” warned Monica Eaton-Cardone, co-founder and COO of Chargebacks911. “Beyond losing merchandise and profits, Internet retailers can face additional fees and consequences in relation to chargebacks, particularly if they exceed the 1-percent threshold set by acquiring banks. Our goal in pinpointing locations with higher-than-average chargeback rates is to allow merchants to perform due diligence on orders originating from or shipping to those cities.”