Chargeback ratios dropping in Europe, Pago reports
The 2007 Pago Report from payment processor Pago eTransaction Services GmbH shows that chargebacks on online credit card transactions on Pago’s European platform have fallen to a record low. In the study, the average chargeback ratio was 0.3% versus 0.4% in the previous year’s survey.
“This means that only three out of every thousand transactions is objected to by the cardholder, resulting in payment reversal,” stated Pago’s study report. Pago attributes the decline to fraud-prevention tools it has added to its platform. The 2007 Pago Report was based on an analysis of some 30 million purchase transactions in Germany, the United Kingdom and other European countries processed on Pago’s payment platform from October 2005 to September 2006.
In other findings, the survey identified a change in European e-commerce shopping habits. Internet shopping is now distributed almost evenly across all days of the week, whereas previous studies showed more transactions executed on work days than on weekends. The percentage of transactions during the week was about 14% for each work day, nearly 14% on Saturday and more than 13% on Sunday. In the previous survey, Saturday represented only 12.6% of transactions and Sunday 11.8%.
Pago also found that women are responsible for an increased percentage of online transactions in Europe. Women now account for nearly 37% of all transactions on the Internet in Europe, up 3% from the previous survey. In Germany, women accounted for 43% women of online transactions.
Pago eTransaction Services is an international acquiring and payment service provider for e-commerce, retail and direct marketing businesses.
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