Sales League Table 2020 | Banking Technology Winners

Results Announced!

Stay up-to-date with the latest industry news and analysis.

Subscribe to BankTech Daily News today. Limited time offer.

The Black Swan Opportunity | Get your bank digital ready.

IBSI Special 5 Digital Report Package with Special Offer. Subscribe now

Core Banking Market Dynamics Report 2020

Global analysis of core banking system sales. Subscribe now

Chargeback issue needs more scrutiny says payments expert

Gabe McGloin, Head of International Merchant Sales and Business Development at Verifi

Following the publication of a survey into the extent of the UK’s payment fraud problem, a leading payments expert has called for more scrutiny of the issue of chargebacks.

UK Finance’s report into the UK’s payment industry, called Fraud the Facts 2019, revealed that last year £1.2 billion was stolen through fraud and scams. But Gabe McGloin, Head of International Merchant Sales and Business Development at Verifi, a player in end-to-end payment protection, said the report falls short by underplaying the problem of chargebacks.

“As the collective voice for the banking and finance industry in the UK, UK Finance does well to draw attention towards the growing issue of card-not-present fraud – a £506.4 million problem,” he said. “What is surprising, is that the report fails to highlight a key consequence of card-not-present fraud – chargebacks. Similarly, the report doesn’t detail the two drivers of chargebacks – that of friendly and family fraud.”

According to a different report by Javelin Strategy & Research and commissioned by Verifi, nearly half of the chargebacks experienced by digital goods merchants are considered to be the result of either friendly or family fraud – when a buyer disputes a transaction that appears on their bank statement and is issued a refund, he commented.

“While friendly and family fraud are not ‘true’ fraud, the problems they present to the payments industry are just as severe as if they were true fraud – with both issuers and merchants facing significant revenue losses, as well as damage to their brand reputation.

“Friendly and family fraud are new terms that are gradually entering into the mainstream lexicon,” he added. “But until the time when they become established causes of card-not-present fraud and are highlighted in these industry reports, they’ll continue to be a growing issue for the payments and retail sectors.”

Related IBS Intelligence Research

Related Posts emerges from stealth mode & launches technology-powered Metal Card, a Philadelphia-based FinTech company, has announced its emergence from stealth mode to debut technology-powered Metal Card, a consumer spending product that leverages proprietary technology to give users controls, convenience, and automatic credit score optimization. With Guaranty, customers do not have to pay fees or interest. They will also receive a premium brand experience […]

This post is only available to members.

Read More »

Cloud9 Technologies teams up with comitFS to boost real-time voice trading APIs

Cloud-based communications provider Cloud9 Technologies has teamed up with comitFS, a UK-based provider of voice middleware and API abstraction capabilities for financial services companies. The collaboration will facilitate the development of real-time call control capabilities for voice trading within the institutional marketplace. “As trading dynamics shift to a more digitally-driven environment, firms want the peace […]

This post is only available to members.

Read More »

Quantum Group acquires mobile cashback app Tail

London-based FinTech incubator Quantum Group today announced the acquisition of mobile cashback app Tail. The acquisition is expected to enable Quantum Group to increase the number of banking partners integrated with Tail and to onboard different retailers from around the UK. Tail’s platform enables retailers to create hyperlocal marketing campaigns, thus allowing them to increase […]

This post is only available to members.

Read More »