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Big Data Released Ahead of T16
April 18, 2016

Chargeback Uptick in the SMB Market

Some payments companies have been mentioning increases in chargebacks since October 1st. This appears to be true, according to The Strawhecker Group's merchant level database of more than 3.5 million card accepting merchants. The charts below illustrate that there were increases in chargeback rates in the SMB market for both transactions and dollar volume throughout much of 2015 with the greatest acceleration occurring in Q4 2015. 
 
For example, the top chart shows that in the SMB Market the chargeback rates for bankcard transactions in Q4 2015 increased nearly 31%. The bottom chart illustrates that chargeback dollar volume rates for bankcard transactions increased 15% in Q4 2015.
Definitions:
  • SMB Market:  Small and medium sized U.S. card accepting businesses, ranging in annual dollar volumes (aka total card-based sales) of between $0 - $10 million.
  • Bank card: MasterCard and Visa signature debit and credit
  • TSG Merchant Database: A merchant-level database of more than 3.5 million card accepting merchants that are submitted from consistent data sources in a recurring manner
  • YOY % Change in Chargeback Rate: Total Chargeback Count as % of Total Bankcard Transactions
  • YOY % Change in Chargeback $ Volume Rate: Total Chargeback Amount as % of Total Bankcard $ Volume
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