Chargebacks remain a significant threat to profitability in the UK’s e-commerce sector, with evolving fraud tactics, shifting customer expectations, and regulatory changes creating a complex landscape. Successful retailers, many of who are attending the eCommerce Forum, are moving beyond reactive dispute handling and instead embracing proactive, end-to-end strategies to prevent chargebacks before they happen…
At the heart of this approach is data-driven risk profiling. Retailers are increasingly using advanced analytics and AI to detect patterns in high-risk transactions, flagging anomalies in behaviour, location, and device usage in real-time. Machine learning models can help segment customers by risk profile and dynamically apply additional verification steps, such as step-up authentication or delivery confirmation.
Clear communication and transparent policies are another pillar of prevention. Ambiguous returns processes, unclear billing descriptors, and delayed shipping updates are all frequent triggers for chargebacks categorised as ‘fraud’ or ‘product not received’. By improving post-purchase communication, through real-time order tracking, chatbots, and branded transactional emails, retailers can reduce the chance of misunderstandings that escalate into disputes.
Equally important is ensuring operational excellence. Delivery issues and poor fulfilment account for a significant percentage of chargebacks. By partnering with reliable logistics providers and leveraging shipment tracking APIs, brands can build trust and provide proof of delivery when needed. Some are also employing geolocation tools to validate delivery claims and challenge ‘item not received’ disputes with stronger evidence.
Multi-layered fraud prevention stacks are becoming the norm. Rather than relying on a single fraud tool, leading brands combine device fingerprinting, behavioural biometrics, CVV/AVS checks, and 3D Secure 2.0 for a robust, friction-balanced approach. Additionally, flagging repeat offenders and analysing refund abuse trends helps identify serial first-party fraud cases.
Cross-functional collaboration between fraud, customer service, and marketing teams also plays a crucial role. Educating agents to spot refund scams, empowering them to resolve complaints pre-emptively, and aligning customer satisfaction metrics with fraud prevention KPIs creates a more unified chargeback defence posture.
Finally, brands are increasingly investing in chargeback alerts and representment tools. Real-time alerts from networks like Ethoca and Verifi allow merchants to refund a transaction before it escalates into a chargeback, while automation tools streamline the representment process with templated responses, transaction evidence, and dispute tracking dashboards.
The brands that win in 2025/2026 will be those that treat chargeback mitigation as an integrated discipline, not an afterthought.
Are you searching for Chargeback solutions for your organisation? The eCommerce Forum can help!
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