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
Datos Insights
We are the advisor of choice to the banking, insurance, securities, and retail technology industries–both the financial institutions and the technology providers who serve them. The Datos Insights mission is to help our clients make better technology decisions so they can protect and grow their customers’ assets.