BRC report highlights chargeback ‘struggles’ for retailers

The British Retail Consortium (BRC) has published a report which highlights the ongoing chargeback “struggles” affecting retailers in the UK.

The survey’s respondents, who were retailers across a wide variety of sectors, identified a change in chargeback issuances linked directly to Covid-19 which saw an average increase of 25%.

Some 90% of retailers polled said that “cardholder abuse of the chargeback process” was a leading concern for their business, while less than a third described their current efforts at managing friendly fraud as being “effective.”

Furthermore, the ‘Chargeback Field Report’ revealed that retailers attempt representment in 43% of cases, only winning 12% of their aforementioned attempts.

In response to the survey’s results, the BRC said: “By facilitating communication between all parties, groups such as the BRC play a huge role in fostering a better understanding of the retailer’s position.

“As an advocate and conduit for giving retailers a voice, the BRC can use its influence to help build a better environment for everyone.”

It added: “The experiences endured through Covid-19 are unprecedented; that doesn’t negate the fact that underlying issues in the payments space predated the pandemic.

“As we try to work our way back to “normal,” we should take this as an opportunity to examine chargeback protocols, and begin the process of transforming them.”