New research from Checkout.com shows that $2bn is lost every year in the UK when transactions are rejected as fraudulent.
In Brief:
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Globally, around $13bn was lost to competitors by merchants who rejected customers on suspicion of fraud.
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Customers giving up on such transactions wiped $7.6bn off the digital economy’s balance sheet.
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Over two-third of merchants have not looked at the data behind failed payments.
What does this mean?
Checkout.com’s research looked at over 5000 consumers and 1,500 merchants as well as qualitative perspectives for giants like Microsoft, Uber and Deliveroo. It shows there is a gap where data should be used more efficiently to investigate whether a payment is fraudulent, rather than rejecting legitimate customers just in case. Unless what the business dubs an “online payments hold” is plugged, the global ecommerce market stands to lose around $20bn.
