E-commerce returns are on the rise, significantly impacting operational costs and profit margins. At the same time, 21% of merchants report that over half of their returns are abusive or fraudulent, leading them to adjust their refund policies. Many merchants now utilize dispute and chargeback avoidance solutions, but their perceived efficacy is mixed.
This report explores how e-commerce merchants in the U.S. and the U.K. navigate the complex landscape of returns and disputes that is rife with fraud, abuse, and a host of competing priorities. It is based on a Datos Insights of 200 U.S. and U.K. e-commerce merchants conducted between July and September 2023.
Clients of Datos Insights’ Fraud & AML service can download this report.
This report mentions Mastercard/Ethoca and Visa/Verifi.
About the Author

Gabrielle Inhofe
Gabrielle Inhofe is a Senior Associate with Datos Insights’s Fraud & AML team. Her primary interests include cryptocurrency, artificial intelligence, and EU policy. Prior to joining Datos Insights, Gabrielle worked in Strategy and Global Regulations at cybersecurity company OneSpan, where she wrote the 2022 Global Financial Regulations Report. Gabrielle has a Masters in Advanced European and International Studies from the...