Holidays are a critical—and fun–time for e-commerce store owners. The holiday season gives merchants a chance to showcase new products and services that can increase their bottom lines. Sales generated during this period also generally contribute to the bulk of a company’s annual revenues.
However, the holidays can also be scary for store owners considering the amount of theft and chargeback disputes that happen during the period. It is estimated that retailers are one and a half times more susceptible to consumer chargeback fraud during the holiday season between Thanksgiving and New Year’s. Any increase in chargebacks can put a significant dent in the net profit margins. Increased chargebacks can also jeopardize the relation with a payment processor; many businesses have found their merchant accounts closed down due to the risk from chargebacks.