Why service matters in managing fraud disputes

Credit unions are rightfully known for providing outstanding service to their members. But this member-centric philosophy can be put to the test during the most stressful interactions, such as card disputes. According to a survey of more than 300 retailers by Chargeback 911 and Digital Commerce 360, nearly three-quarters reported a rise in chargeback fraud, with more than half saying that so-called “friendly fraud” is a “significant” or “moderate” concern for their business. Another survey from Justt found that the share of U.S. consumers who have filed at least one chargeback in the past year rose by 12% in 2023, to more than three in four.

If credit unions don’t get the service side of these engagements right, they risk creating dissatisfied members and losing relationships. Consumers value the service they receive from the brands they do business with above almost any other factor in the relationship.

Consider that according to Zendesk, 81% of consumers say they would be more likely to make another purchase following a positive customer service experience. On the flip side, 6 in 10 would switch to a competitor after a single poor service experience. Worse yet, according to a Salesforce research, 62% of dissatisfied customers tell others about their bad experiences.

 

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