Promoting Financial Literacy Encourages More Equitable eCommerce Experiences
More often than not, consumers who commit friendly fraud do not set out with the intent of ripping-off merchants and getting something for nothing. Rather, these illegitimate chargebacks are often the result of learned consumer behaviors. Correcting those behaviors requires advanced financial literacy and a greater understanding of cardholder responsibility.
That’s why we’re pleased to announce a new partnership between eConsumerServices, the dispute mediation division of our brand, and nonprofit group Consumer Action.
This development is just the latest in our ongoing quest to bring greater awareness to consumers, thereby encouraging an industry-wide reduction of friendly fraud.
Joining Forces with Industry Influencers
Consumer Action is one of the nation’s leading resources for consumers, providing unparalleled financial literacy education and advocating on behalf of underrepresented consumers.
We are proud to stand alongside influential brands including Visa, Bank of America, Capital One, American Express, Facebook, Google, and Microsoft as official partners of Consumer Action.
By assisting this organization in their effort to help consumers achieve financial prosperity, we can help draw greater attention to the impact of eCommerce fraud on both merchants and consumers.
What We Hope to Accomplish
Our new partnership is part of the next phase in our ongoing effort to change cardholder behaviors and provide greater awareness of the ramifications of friendly fraud. In taking on this responsibility, we can:
- Encourage safe and prosperous online interactions. By helping cardholders understand the potential dangers associated with eCommerce, they’ll be better equipped to transact in a safe manner with reputable merchants.
- Help cardholders understand the dynamics of eCommerce. Consumer will better understand the common policies and practices of online shopping, thus increasing the odds that they will have a satisfactory experience.
- Boost awareness of cardholder responsibilities. Payment card ownership is a privilege, not a right. Cardholders must understand the rules governing payment card transactions, including the chargeback process.
- Enlighten consumers to the realities of the chargeback process. Proprietary eConsumerServices research found that 49 percent of friendly fraud cases were initiated accidentally. Cardholders didn’t mean to commit fraud, they mistakenly thought the bank could contact the merchant on their behalf.
- Challenge the idea of eCommerce fraud as a “victimless crime.” Some cardholders brazenly engage in acts of cyber shoplifting. Cardholders need to understand the ramifications of illegitimate chargebacks for both merchants and consumers.
- Promote eConsumerServices. Our company mediates disputes between merchants and consumers. We facilitate quick and easy refunds, offering consumers a better alternative to a chargeback while simultaneously helping merchants keep chargeback rates low.
Unwavering Advocacy for Online Merchants and eCommerce Equitability
Our overall purpose is to create a more prosperous eCommerce environment for everyone involved. Because unnecessary chargebacks ultimately hurt shoppers through higher prices, consumer education is an essential component of friendly fraud mitigation.
This partnership with Consumer Action is just one of our latest efforts toward our goal of creating a more prosperous and sustainable eCommerce environment.
To read more about this partnership, click here.