World Cup chargebacks coming

Retailers and service providers who saw a sales lift during the World Cup should brace for a wave of fraud-related chargebacks. Fraud tracking experts warn that the delayed nature of payment disputes means the 'hangover' from major global events is about to hit merchant accounts. When fraudsters use stolen credentials to buy merchandise or travel services, the actual cardholders often don't notice or report the activity until they review their monthly statements weeks later. This creates a time bomb for your cash flow. For businesses using financing or BNPL options, this is a critical moment to review your merchant agreements regarding liability. While many consumer financing providers offer fraud protection, high chargeback rates can still lead to increased processing fees or temporary holds on your funds. The spike in activity surrounding global events often bypasses standard automated filters because the high volume of legitimate, high-velocity transactions provides cover for bad actors. You should expect to see disputes peaking in the next 30 days. Now is the time to gather your documentation, shipping receipts, and proof of delivery to defend against illegitimate claims.

Source: Payments Dive

← Return to the library· Submit a correction