Chargebacks Hit Record Low in European Ecommerce
By Anna Johnson on November 26th, 2009For all the horror stories about credit card fraud occurring on the Internet, it seems that, in Europe at least, Internet related chargebacks have declined.
According to Deutsche Card Services, non-payment risk in European ecommerce has fallen to the lowest level in seven years, with the chargeback ratio – the share of credit card payments charged back after an objection by the cardholder – down to just 0.2 percent.
Deutsche Card Services says the decline in the chargeback ratio is largely due to a drop from 0.19 percent to 0.12 percent occurring in Germany. This is lower than the shoplifting ratio occurring in the German stationary retail trade of 0.5 percent.
Deutsche Card Services has compiled its findings in its ‘Trends in E-Commerce Purchasing and Payment Behaviour’ report, based on a sample of around 30 million real-life purchase transactions processed via the Deutsche Card Services platform. These purchases were made in the retail, services, travel and entertainment sectors.
