A research report has revealed that cardholders are eager for digital solutions that provide greater insight and transparency into their purchases.
The study was conducted by Mastercard company Ethoca in collaboration with Aite Group.
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According to the study, 72% of over 1000 consumers surveyed said they use website or mobile-based financial services application at least once a month.
More importantly, 96% of the respondents said they prefer having more detailed transaction information available for increased clarity.
They cited the need for essential features like a picture of the printed receipt, date and location for online orders, list of products purchased and a link for returns and refunds.
These features improve cardholder experience and help reduce unintentional false claims.
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By GlobalDataThe false chargeback claims for online goods merchants are as high as 80% and more, and the study cited transaction confusion as a common reason.
The study further revealed that the cost of chargebacks to US card-issuers is expected to grow from $690m in 2020 to over $1bn by 2023.
By providing additional transaction clarity on purchases, the claims call volumes can be reduced by 25% and benefit the card issuers, merchants, cardholders and payment service providers.
Ethoca chief marketing & product officer Keith Briscoe said: “Ethoca’s collaboration with Aite on this critical research report validates what Ethoca has been hearing from card issuers and merchants for some time – that the false claims from confusing or scant transaction information are creating a poor customer experience and driving up dispute processing costs.
Aite Group research director Julie Conroy said: “It is more important than ever for issuers to be able to facilitate user-friendly self-service capabilities.
“The provision of detailed transaction information in the digital channels and call centre is an important underpinning of any digital dispute capability.”
Other key findings
Approximately 27% of the respondents said that once they contacted their financial institution, they found they were charged correctly.
The survey found 65% deflection rate among card issuers as they leveraged collaborative solutions to display enhanced transactional details.
