Report: European E-Commerce Fraud Down Slightly

Dec. 6, 2010

The number of fraud attempts online in Europe has declined slightly in the past year, according to a report by Cologne, Germany-based Deutsche Card Services. The company’s E-Commerce Report 2010 said chargebacks on credit card transactions—still the most popular e-commerce payment method in Europe—fell slightly.   The share of chargebacks disputed on the grounds that the purchase was not authorized by the cardholder or that the card was not presented fell by 7 percent, according to the report. At 0.34 percent, the chargeback ratio—the share of credit card transactions charged back after an objection by the cardholder—remains low. The non-payment risk is higher for men than for women and higher in Britain than any other country in Europe, the survey found. Additionally, it is higher for both British shops and British customers and is above the European average. For all card payments in e-commerce and, with one exception, to direct debits, that a higher transaction value means a higher non-payment risk.