Online retail`s new dilemma: Fight chargeback fraud or not

[mandy]

The ideal—if not the actual goal—of fraud management programs for online retailers is to shrink chargebacks on fraudulent orders to zero, right? Maybe. Given rapid growth in online order volume, particularly at larger e-retailers, and the burden it will place on fraud programs, it may just be better for the bottom line to let some of the fraudulent orders go through...

CyberSource notes that medium-sized and large online retailers appear to be coming out slightly ahead by accepting a slightly higher number of fraudulent orders. Such merchants, according to the survey report, may be “examining the trade-off between valid order rejection and fraud acceptance, and making a bottom-line ‘net profit’ decision in the face of operational realities.”...

full article: http://www.internetretailer.com/article.asp?id=17757