Chargeback Uptick in the SMB Market

Some payments companies have been mentioning increases in chargebacks since October 1st. This appears to be true, according to The Strawhecker Group's merchant level database of more than 3.5 million card accepting merchants. The charts below illustrate that there were increases in chargeback rates in the SMB market for both transactions and dollar volume throughout much of 2015 with the greatest acceleration occurring in Q4 2015.

For example, the top chart shows that in the SMB Market the chargeback rates for bankcard transactions in Q4 2015 increased nearly 31%. The bottom chart illustrates that chargeback dollar volume rates for bankcard transactions increased 15% in Q4 2015.

Definitions:

SMB Market: Small and medium sized U.S. card accepting businesses, ranging in annual dollar volumes (aka total card-based sales) of between $0 - $10 million.
Bank card: MasterCard and Visa signature debit and credit
TSG Merchant Database: A merchant-level database of more than 3.5 million card accepting merchants that are submitted from consistent data sources in a recurring manner
YOY % Change in Chargeback Rate: Total Chargeback Count as % of Total Bankcard Transactions
YOY % Change in Chargeback $ Volume Rate: Total Chargeback Amount as % of Total Bankcard $ Volume

Forward

Copyright © 2016 The Strawhecker Group, All rights reserved.

Our mailing address is:
10730 Pacific St. Suite 234 Omaha, NE 68114

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list
The above will remove you from all TSG communications, this includes email blasts as well as NewsFilter. Please be aware of this before you choose to unsubscribe. Thank you, we appreciate your continued readership.