The progress e-merchants made against chargebacks over the past year is encouraging. Nevertheless, the battle rages on.
While chargeback ratios have "come down significantly, it's still a big problem," says Visa's McCarthy. Chargebacks for face-to-face transactions are "somewhere in the neighborhood of 7 cents to 8 cents out of every $100 put on a Visa card," he says. "We are still in the 25-cents-to-30-cents range in the e-commerce channel. There's still a big gap we want to close."