Chargebacks and chargeback fraud (or “friendly fraud”) are unsurprising and unwelcome realities for e-commerce merchants, but one characteristic of the people most likely to engage in chargeback fraud is surprising. In an analysis of its customers’ chargebacks, chargeback-management solutions provider Chargebacks911 found that 76 percent of all chargeback fraud in the U.S. was committed by women while they accounted for only 58 percent of all online spend. Monica Eaton-Cardone, Chargebacks911’s COO, doesn’t necessarily believe the disparity is caused by women being more dishonest than men.
“One theory is that women are more selective,” she said.“[One report said] 68 percent of women had abandoned an apparel or clothing purchase on a mobile device, but just 51 percent of men had abandoned a purchase. This might mean that men are more likely to accept a ‘good enough’ solution, so they can justify abandoning the shopping process and proceed to another activity, whereas women have more specific expectations about what they want, and a greater willingness to seek the optimal outcome. So it’s not that women are less honest than men, but that women will utilize every available resource to resolve a shopping dispute.”
Eaton-Cardone said Chargeback911’s analysis suggests online retailers that cater to a predominantly female clientele should proactively plan for chargebacks.