U.S. eCommerce is expected to grow by 18% in 2020 amid COVID-19. If you want to get more information concerning eCommerce sales and chargebacks, as well as know who can help you with a reliable and cheap merchant service provider, you’re on the right page.
eCommerce Sales & Chargebacks
In May, the global retail eCommerce sales rose by 81%, as compared to the same period in 2019. There were sectors that registered a triple-digit YoY increase in sales, as ACI (Airport Council International) Worldwide reported. E.g., sportswear and sporting goods sales grew by 216%, housewares and DIY supplies sales rose by 190%, and gaming saw an 84% rise in sales.
This global economic crisis has made companies face a huge increase in chargebacks and friendly fraud. Non-fraudulent chargebacks have risen by 25% overall: airline and ticketing spaces have felt a particular impact, according to ACI.
Industries are faced with chargeback losses 10 times higher as compared to the period before COVID-19. The travel sector has appeared on the top of the charts: some airlines are facing over 100 times their anticipated exposure.
What’s more, public mentality has changed: a new definition of “dispute” has emerged. People are using the chargeback mechanism to make their bank balances better, even when there’re no genuine claims, which is known as “friendly fraud.”
Merchant Service Provider You Need
Given the rapid changes in eCommerce, it’s more critical than ever to find a true payment expert to work with to fight fraud and mitigate chargebacks successfully.
For this, you just need to turn to a respectable merchant-processor comparison specialist in the U.S. that can help you find the safest and cheapest merchant service provider in the country. Make sure the comparison specialist guarantees the most trustworthy snapshot of processors at the time of writing.
According to eMarketer, eCommerce is anticipated to grow by 18% following an almost 15% gain registered last year. Besides, a 10.5% drop in overall U.S. retail sales is forecast for 2020: brick-and-mortar sales are expected to decline by 14%.
Click-and-collect eCommerce sales are foreseen to reach $58.52 billion, which is up 60.4% from eMarketer’s initial expectations of 38.6% growth.
As you see, eCommerce is booming amid COVID-19. Unfortunately, chargebacks are on the rise as a result. To fight them successfully, work with a true payment expert in your field.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of the merchant service provider. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie on his backyard porch, as should all right-thinking people.
