Shimatomo Co., Ltd.
About 90% of EC businesses want to reduce the number of chargebacks! What is the percentage of businesses that are actually taking measures?
More than 80% of businesses are taking measures or considering them
Shimatomo Co., Ltd. (Headquarters: Chuo-ku, Tokyo; Representative Director: Atsushi Togeoka) conducted a survey on “chargeback risks and countermeasures” targeting e-commerce businesses.
Have you ever heard of a system called “chargeback”?
In the case of shopping by credit card payment, the credit card company may request the merchant to refund the payment for the product that was transacted due to fraudulent use of the card, or the payment may be refused.
In this case, it is said that not only the business loses sales, but also the products sold may not be returned.
Recently, it seems that more consumers are using credit card payments for shopping on e-commerce sites due to the penetration of the Internet and the increase in time spent at home due to the corona crisis, but in a sense this is a very big risk for businesses. It can be said that
What happens to each EC business when a chargeback occurs? Also, is it possible to deal with it?
Therefore, Shimatomo Co., Ltd., which operates the credit card payment service “SUI” (https://sui-c-ad.com/), conducted a survey on “chargeback occurrence risk and countermeasures” for e-commerce business operators. It was conducted.
Let’s ask how often e-commerce business operators actually experience chargebacks and how they are responding (trying to respond). More than 60% of business operators have experience with credit card payment chargebacks
First, we asked if they had ever experienced a chargeback on a customer transaction.
When asked, “Have you ever experienced a chargeback in a customer transaction?”, more than 60% of respondents answered “frequently (23.0%)” and “occasionally (38.8%).”
In total, more than 60% of businesses responded that they had experienced chargebacks, and more than 20% of them experienced chargebacks with high frequency.
Number of chargebacks and maximum amount per chargeback
We then asked how often chargebacks occurred.
When asked, “How many chargebacks do you have in customer
transactions?” %)” and “About once every few years (22.0%)”. More than 30% of people experienced several cases a year, and it was found that the most people experienced this frequency.
So what was the largest single chargeback amount?
Therefore, when asked, “What was the largest single chargeback amount?” “Less than 10,000 yen (22.4%)” followed by “100,000 yen to less than 200,000 yen (19.6%).”
Nearly 30% of respondents answered between 10,000 yen and less than 100,000 yen, which was the highest number, but about 20% of
respondents answered that the amount was large, between 100,000 yen and less than 200,000 yen.
Does the business understand the reason for the chargeback? flow when it occurs In the above question, more than 60% of business operators have experienced chargebacks, and more than 30% of them answered that they occur several times a year.
In addition, nearly 30% of respondents answered that the largest amount per chargeback was between 10,000 yen and less than 100,000 yen.
So what causes chargebacks?
When asked, “What is the most common cause of chargebacks?”, the most common answer was “Unauthorized use due to theft or loss of cards (37.5%),” followed by “Third parties ( This was followed by misuse of card numbers by friends, etc. (27.3%) and use by third parties (family members, etc.) (18.5%).
Unauthorized use due to card theft or loss was the most common, at about 40%, and over 40% of card numbers were misused by third parties, including friends and family members.
So, what measures did the card company and payment agency take when the chargeback occurred?
I asked in detail.
■How different credit card companies deal with each other? Even if there is a quick response and there is no compensation
・ Investigated and compensated (40s / male / Aichi Prefecture) ・ No special compensation (40s / male / Shiga Prefecture)
・They stopped my card and responded quickly (40s/male/Kyoto Prefecture) ・ Cancellation of the target transaction (40s / male / Iwate Prefecture) ・Since they do not respond, I am using insurance (50s / male / Kanagawa Prefecture)
・ Full refund to the customer (50s / male / Fukuoka Prefecture) In some cases, we are able to quickly investigate, suspend card use, and issue refunds.
Nearly 90% of businesses want to reduce the number of chargebacks! But the actual solution is…
We found that theft or loss was the most common cause of chargebacks. In addition, depending on the case and the card company, we can see that there are cases where measures such as investigation, suspension of card use, and refunds are performed, and there are cases where it is not.
Under such circumstances, do you want to reduce the number of chargebacks (do you want to prevent them from happening)?
When asked, “Do you want to reduce the number of chargebacks (do you want to prevent them from happening)?”, More than 80% of respondents answered “I think (88.6%).”
It seems that a great many people want to reduce the number of chargebacks (prevent them from happening).
Therefore, when asked, “Are you taking any measures to prevent chargebacks?”, the largest number of respondents answered, “Currently considering (53.0%),” followed by “Doing ( 30.8%)” and “Not done (16.2%)”.
More than half of the respondents answered that they were “under consideration.” At present, no specific measures have been taken, and the results exceeded those who are taking measures.
The reasons for those who have not been able to take measures and the efforts of those who have. The most common countermeasure is [fraud detection service]
In the above question, nearly 90% of people want to reduce the number of chargebacks (would like to prevent them from occurring), but more than half of them are considering and working on actual initiatives. remained at about 30%.
So what is the reason for not taking action?
I asked in detail.
■ Low importance and urgency because they have never suffered damage and even if they do, the damage will be small.
・This kind of problem is directly linked to complaints, so
countermeasures are necessary, but I don’t think it’s an urgent matter because I can’t feel the actual damage (30s/male/Aichi Prefecture) ・ Because it is not possible to judge which measures are effective (40s / male / Gifu Prefecture)
・I can’t help it, and I can’t handle it (40s/male/Wakayama Prefecture) ・Because the total amount of money is not that big (40s/male/Miyazaki Prefecture)
・ I don’t know what to do (40s / female / Hyogo Prefecture)
・Since the frequency is low, it is difficult to take specific measures (50s/female/Fukuoka Prefecture)
Many people have never actually suffered damage, and even if they did, the amount of damage was not so large, so it seems that they do not think that there is much merit in taking countermeasures.
There were also opinions that although they were aware of the problem, they did not know what to actually do.
On the other hand, if you are working on it or are considering it, what kind of specific efforts are you doing or considering?
When asked, “What kind of initiatives are you (or are you planning to take)? (Multiple answers allowed), the majority of respondents answered that they are considering introducing a 3D Secure
authentication service (37.8%). This was followed by “fraud detection service has been introduced (32.1%)” and “3D secure authentication service has been introduced (29.5%)”.
Nearly 40% of people are considering introducing the 3D Secure authentication service, and when adding about 30% of those who have already introduced it, nearly 70% are taking some kind of action. So how much do you know about PCI DSS, which is designed to ensure the security of credit cardholder card and transaction information? Therefore, when asked “How much do you know about PCI-DSS 3.2.1?”, nearly 70% answered “completely (20.3%)” and “somewhat (47.0%)”. I answered.
Nearly 70% of people understand it to some extent, indicating that they are in the majority.
All credit card merchants are now required to fully comply with PCI-DSS 3.2.1 for their payment systems.
If you are dealing with a payment company, it is better to strengthen the confirmation as there is a possibility of information leakage. You can verify full PCI-DSS compliance by requesting an audit certificate known as AOC.
You should also make sure that your payment processor is a legitimate credit card processor.
You can check the registered credit card handling businesses on the website of the Ministry of Economy, Trade and Industry.
[Summary] Chargebacks are a big burden for businesses! What is necessary for a transaction in which both the buyer and the seller can feel secure
According to the results of this survey, more than 60% of business operators have experienced chargebacks, and more than 30% of them answered that they occur several times a year.
Unauthorized use due to card theft or loss was the most common, at about 40%, and the number of card numbers misused by third parties, including those by friends and family members, rose to nearly 50%. In the event of unauthorized use, there are cases where you can receive a refund or other response, but there are also responses that there is no compensation and you have to deal with insurance. The content of the response varies depending on the nature of the case and the card company, and nearly 90% of people seem to want to reduce the number of chargebacks (prevent them from occurring).
However, about 50% of the respondents were considering actual initiatives, and only about 30% were working on them.
Any sales that are canceled in the event of a chargeback will be borne by the merchant if the identity of the cardholder has not been verified.
However, if your identity is verified, the credit card company will bear the cost.
Therefore, if businesses verify their identities with 3D Secure, they can increase the possibility of avoiding damages in the event of chargebacks.
Based on this, nearly 40% of people are considering introducing the 3D Secure authentication service, and nearly 70% of those who have already introduced it are taking some action. I can tell.
In order to reduce the burden on businesses and protect users’ safety, it is important to prepare multiple mechanisms to prevent chargebacks in addition to 3D Secure.
It can be said that increasing the convenience of shopping is essential for improving sales, but the IT literacy of many e-commerce businesses is not at a high level.
For that reason, it would be very appreciated for e-commerce business operators to have a company that they can consult on strengthening security measures for credit card transactions.
Some payment agencies provide services such as providing phone numbers free of charge, so why not use this as a reference for introduction? “SUI” for credit card settlement services
Shimatomo Co., Ltd., which conducted a survey on “Chargeback Occurrence Risk and Countermeasures” this time, operates a credit card payment agency service “SUI” (https://sui-c-ad.com/).
We also provide a free phone number to our customers and provide a service that allows many people to use the SMS identity verification system.
■ What are SUI services?
・What is a payment agency?
Normally, in order to introduce credit card payment, there is an examination and contract with each credit card company, and the trust and track record of the store are required, but SUI handles all such processes on your behalf.
Therefore, you can quickly introduce credit card payment with a simple procedure.
There is no need to make separate contracts with each credit card company. ・Speedy implementation
With SUI’s unique screening process, we are able to respond quickly, and you can use it in as little as two days.
The procedure for introduction is also simplified as much as possible, and it does not take time for the person in charge.
・Significant cost reduction
In addition, the cost of introducing credit card payments has also been significantly reduced, making it possible to offer a low price. We are able to keep our prices low by dealing directly with banks. We also offer lower payment fees than other companies.
・Corresponding to various industries
Payment is possible in many industries because credit card company’s merchant screening is not required.
In addition, it can be introduced by individuals regardless of the size of the store.
We have a track record of implementation in various industries. Please contact us by all means once.
・Reliable and reliable credit service
Of course, the security system is perfect.
We offer a 24-hour secure credit service.
We have 10 years of trust and achievements in the settlement industry. We offer a wide range of payment methods to suit a variety of industries and business types.
Please contact us if you have given up on introduction due to the type of industry or the cost of payment.
We also offer lower payment fees than other companies.
If you are looking for an easy, fast, and low-cost credit card payment service, please leave it to SUI Payment Service.
*Some products and services are not available for payment. For details, please contact the person in charge.
*There is also a preliminary screening by our company.
・Introduction of 3D secure system
3D Secure (Personal Authentication Payment Service) is a general term for personal authentication services provided by JCB, VISA, and MasterCard.
When paying by credit card, a screen for entering a preset password will be displayed, and authentication (personal authentication) will be performed based on the password.
Payment will not be made if the password is not entered or if the entered password is incorrect.
Therefore, damage caused by unauthorized use of stolen or counterfeit cards is deterred.
■ Convenient payment service of SUI Credit Service
1. Link payment
We will connect the site and the payment page with an HTML link. This is a payment service that supports mail-order sales and online applications and payments.
Both one-time payment and continuous payment are available.
2. Mail credit settlement
Generate only the URL of the payment page and send it to the customer by email or SNS.
When the customer opens the URL, the payment page is displayed and the card payment can be made.
Card payments can be made immediately after signing a contract without the extra hassle and cost of connecting to the site.
3. PC/smartphone payment
We also offer face-to-face payment, such as a low-cost card reader that replaces a CAT terminal, a credit payment screen that can be displayed on the store’s computer screen, and a smartphone payment screen that can be used conveniently when out and about.
4. Receipt agent service
You can deposit and send money by bank transfer.
Deposits and withdrawals are reflected in the management screen in real time. Recommended for sole proprietors who cannot use a personal bank account, or for overseas business operators who do not have a Japanese bank account.
・ Click here for collection agent service: https://www.sui-c-ad.com/bank-s/ ■Why choose SUI Credit Service?
Efficient payment methods that do not miss sales opportunities We offer online payment for owners who operate online shops, card reader payment for shop owners who wish to pay face-to-face, and computer payment when taking phone orders. I’m here.
SUI Credit Service’s credit card payment is extremely cheap to introduce! In general, initial contract costs and terminal fees often cost tens of thousands of yen.
However, with SUI Credit Service, the hurdle to introduction is lowered by setting the introduction cost from 0 yen, and we have received many contracts.
Super speed introduction from 1 day at the shortest!
Normally, it takes 1.5 to 3 months for credit card merchant screening in Japan. In addition, since contracts with each card company are not required, there is no need for a huge amount of paperwork.
The card sales management screen is easy to see, and it also supports Excel and CSV!
We have prepared an online payment management screen (sales total screen) for all member stores with an initial cost of 0 yen. Daily sales, monthly sales, data extraction of sales trends, etc. are all possible with this one.
■ Credit card payment agency SUI: https://sui-c-ad.com/
■ Inquiries TEL: Tokyo Head Office / 03-6667-0668, Kansai Sales Office / 0748-32-1411
(Reception hours weekdays 9:30-18:30)
■ Shimatomo Co., Ltd.: http://www.shimatomo.com/index.php
Survey overview: Survey on “Chargeback Occurrence Risk and Countermeasures” [Survey period] November 29, 2022 (Tuesday) to December 2, 2022 (Friday) [Survey method] Internet survey
[Number of people surveyed] 1,024 people
[Survey target] EC business operators
[Monitor provider] General Research
Details about this release: