Although credit cards remain the most popular method of payment in general for online purchases by European consumers, 64% of German consumers used direct debit payment in 2004, a 5% increase from 2003, according to Pago Report 2005.
The report is based on analysis of 20 million transactions processed for European online shops by Cologne, Germany-based Pago eTransaction Services GmbH, an acquirer and payment service provider.
Pago also reported that the credit card chargeback rate for German consumers dropped by 50% while it increased about 200% for customers from other European countries. Online gambling had the lowest chargeback rate-0.26% of transactions. That compares with an average rate of 0.83% for all e-commerce transactions in Europe.
“Despite the fact that there was only slight growth in European e-commerce last year, the trend towards more reliability and trustworthiness in online trading will gather pace,” said Ruediger Trautmann, Pago CEO. “This will ensure that consumers can enjoy the diversity of online trading without any apprehension.”