Mexico hosts the most important online chargeback
Mexican banks registered almost 2.9 million cases of suspected fraud in 2014, totaling around US $480 million among which 48% with credit card.
Chargeback: a chargeback is a form of customer protection provided by their issuing banks, which allows cardholders to file a complaint regarding fraudulent transactions on their statement. Once the transaction is indeed proven to be fraudulent, the bank will refund the original value to the cardholder. From the merchant’s point of view, if he doesn’t prove the transaction to be legitimate, the bank will take back the entire value of the transaction from his account, along with an additional fee.
With the chargeback based on the number of fraudulent rate, Mexico ranks at the second place with a 2.82% rate. Moreover, Mexico is the leader in the fraud rate category based on transaction volume.
PSD2: The Payment Service Directive in Europe includes several components and introduces new rules that are of direct interest to consumers, such as:
– The obligation of strong authentication(that is to say at least two factors between a code or a password, a device, a biometric data such as the fingerprint digital, voice or iris) for online payments over 30 euros, to reduce fraud in e-commerce.