Report Names Cities with Highest Chargeback Rates
Nov. 17, 2014
Show Low, Ariz. And Port Washington, N.Y. topped a list of U.S cities with the highest chargeback rates, according to a study conducted by Chargebacks911. The Tampa-based chargeback-management company analyzed a half million chargebacks on e-commerce purchases made in 2013 and found cardholders bypassed the merchant entirely 58 percent of the time, contacting the issuer first to file a chargeback. In another 28 percent of cases, consumers contacted the merchant only after the chargeback had already been filed.
“Consumers who have a legitimate concern about their purchase should first give the merchant an opportunity to make things right before resorting to a chargeback,” said Monica Eaton-Cardone, co-founder of Chargebacks911. “The fact that so few are doing so suggests a potential for dishonesty or laziness. What’s worse is that some credit-card issuers and banks actually encourage such behavior by emphasizing ‘zero liability’ in their credit offers and requiring minimal substantiation for transaction disputes.”
Chargeback rates in Show Low reached 2.2 percent in 2013. Transactions originating in Port Washington were charged back 1.7 percent of the time. ZIP codes in San Jose, Calif. (95131), Astoria, N.Y. (11105) and Miami, Fla. (33145) had a chargeback rate of 1.5 percent. Consumers in Chicago, Ill. (60646) and Sherman Oaks, Calif. (91423) charged back e-commerce purchases 1.4 percent of the time and nine other cities, five of which are in California, had an average chargeback rate of 1.3 percent.