What is the scope of the industry’s fraudulent chargebacks problem?

Across the retail industry– including all retail channels, brick and mortar and online retailers— fraudulent chargebacks cost the industry approximately $40 billion per year.

Friendly fraud alone is a driving a great deal of growth in chargeback levels costing the retail industry $12 billion annually. The 2016 LexisNexis “The True Cost of Fraud Study” revealed that every $1.00 in fraudulent chargebacks actually costs a retailer $2.40 in fees, processing, disputes and related expenses.