Latest news with #chargebacks
Yahoo
5 days ago
- Politics
- Yahoo
Board of elections approves chargebacks
JEFFERSON — The Ashtabula County Board of Elections approved chargebacks for the May election at a meeting Thursday morning. Board of Elections Director John Mead said the total for chargebacks for the election was a little over $118,000. The total costs for all levies in the county was a little over $80,000, with the remainder of the cost paying for the statewide issue on the ballot. The two county-wide issues for the election, levies for senior services and the county Mental Health and Recovery Services Board, both cost around $36,000. Mead said the board is aggressively looking for new poll workers. Board of Elections Deputy Director Charlie Frye said the board has had trouble conducting election outreach on social media. 'We actually went and announced on Facebook that there was an election, and Facebook put us in jail,' he said. The Ohio Secretary of State's office could not help the county board of elections with the issues it was having, Frye said. 'Right now, we're chasing new registrants,' he said. 'We targeted all the Democrats in the county, because we're a little more deficient on Democrats than Republicans.' The office is trying to outreach to Democrats who voted in the 2018 and 2020 primaries, he said. The board of elections is setting up a mock election for the week of August 25. The election will be for juniors and seniors at St. John School, A-Tech and Geneva, Edgewood and Grand Valley high schools. There will be one machine in each school. Frye said the board will use the event to get students registered to vote, and to recruit poll workers. The board of election's next meeting is planned for 10 a.m. Aug. 13. The filing deadline for the Nov. 4 election is Aug. 6, Frye said.
CTV News
6 days ago
- Business
- CTV News
Securities regulator proposes ending chargebacks in distribution of investment funds
A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a $20 bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa, Wednesday, Sept. 4, 2024. THE CANADIAN PRESS/Justin Tang TORONTO — The Canadian Securities Administrators is proposing to stop the use of chargebacks in the distribution of investment funds. The regulatory group says investment dealers sometimes receive an upfront commission or payment when their client buys securities. It says chargebacks happen when those clients redeem those securities before a fixed schedule, requiring the dealer to pay back all or part of the upfront commission or payment. The CSA says it's concerned that poses a conflict of interest as it may incentivize advisers to prioritize their own interest over that of their clients. CSA chair Stan Magidson, who also is chair and CEO of the Alberta Securities Commission, says the proposed amendments prioritize investor protection and foster fairer compensation practices. The council of the securities regulators of Canada's provinces and territories has published the proposed amendments for a 90-day comment period, which closes on Sept. 24. --- This report by The Canadian Press was first published June 26, 2025.
Yahoo
6 days ago
- Business
- Yahoo
Securities regulator proposes ending chargebacks in distribution of investment funds
TORONTO — The Canadian Securities Administrators is proposing to stop the use of chargebacks in the distribution of investment funds. The regulatory group says investment dealers sometimes receive an upfront commission or payment when their client buys securities. It says chargebacks happen when those clients redeem those securities before a fixed schedule, requiring the dealer to pay back all or part of the upfront commission or payment. The CSA says it's concerned that poses a conflict of interest as it may incentivize advisers to prioritize their own interest over that of their clients. CSA chair Stan Magidson, who also is chair and CEO of the Alberta Securities Commission, says the proposed amendments prioritize investor protection and foster fairer compensation practices. The council of the securities regulators of Canada's provinces and territories has published the proposed amendments for a 90-day comment period, which closes on Sept. 24. This report by The Canadian Press was first published June 26, 2025. The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Finextra
20-06-2025
- Business
- Finextra
Issuers must take urgent action against fraud as chargebacks escalate: By Frank Moreno
Recent data shows that issuers and merchants are struggling with rising chargeback abuse. With all indicators pointing to the already considerable problem growing by a further 24% by 2028, financial institutions (FIs) must act or risk losing both customers and profits. According to the Mastercard's 2025 State of Chargebacks report, abuse of chargebacks is a rapidly growing problem, with both merchants and FIs taking a significant hit. And things are about to get worse. Worldwide, issuers and merchants have seen a 10% increase in chargeback volume in the past year. This rise has been driven by a rapid growth in digitization as consumers lean into the convenience of e-commerce. In addition, the ease of disputing transactions at the click of a button has seen FIs in both the U.S. and UK experiencing a 30% to 40% increase in consumer dispute volumes via their digital channels. In fact, the report suggests that over the next five years, global chargebacks volume is set to grow from $261 million in 2025 to reach $324 million in 2028. For the U.S., this means chargebacks will total a staggering $20.47bn in just three years. For issuers, the picture looks even bleaker. Globally, only 28% of their chargebacks are legitimate disputes, while a whopping 72% are fraudulent (59% being third-party fraud, while 13% is first-party fraud). Card issuers face a complex set of challenges One of the biggest challenges facing FIs when it comes to third-party card-not-present (CNP) fraud that fuels chargebacks is aging infrastructure. Legacy systems are limited in their ability to handle this type of fraud due to outdated architectures, fragmented data, and reliance on rigid rule-based detection. Many systems are also still heavily reliant on manual investigation processes. Tracking fraud is another major headache. The same research found that not all FIs track whether the fraud is first-party or third-party. Misclassification and underreporting could lead to inadequate response strategies and higher operational costs, with FIs burdened by time-consuming and expensive investigations. In fact, some FIs report that they need one full-time employee for every $13,000 to $14,000 in incoming annual cardholder disputes. Issuers can attest: first-party fraud is especially hard to pinpoint. What's more, the cardholder's history may show no prior suspicious activity. Responding to a customer dispute by suggesting that they are lying or committing fraud will hardly help FIs maintain good relationships with their hard-won customers. In the U.S., for instance, FIs and merchants only win around half of their disputes and, in the absence of forensic proof, they are likely to issue the chargeback – even if the suspicions are valid. Take action early to avoid future pain Many Fis may not be aware what a significant role an effective 3DS program could play in the fight against chargebacks. Stopping fraud at the point of authentication is the low-hanging fruit in reducing the cost of chargebacks. With the right 3DS access control server (ACS) and modern authentication methods, FIs can combat first-party fraud with forensic proof that the transaction was legitimately authenticated. Moreover, they can tackle third-party fraud by simply detecting fraud more effectively – without adding friction. To reduce the impact of first-party fraud, cryptographic device binding technology is able to link each customer's account to a specific device and app, creating a unique digital signature for every transaction. This allows FIs to prove that a transaction was performed from the legitimate user's device, enabling banks to present strong, tamper-proof evidence to refute first-party fraud claims. To battle third-party fraud, 3DS programs that harness risk-based authentication (RBA) and low- or no-friction authentication methods empower FIs to use strong security that improves the cardholder experience and increases transaction success. However, an FI's 3DS approach should be part of a broader, multi-layered fraud prevention strategy that includes context-aware authentication not only to detect fraud across banking and payment channels more effectively, but also to recognize customers across channels to deliver consistent, streamlined experiences. Creating a better experience There has never been a more urgent time for FIs to consider how to update their chargeback reduction strategy. 3DS is an under-appreciated tactic in that regard. If issuers or merchants are concerned that fraud prevention will add friction that negatively affects transaction success, they are using the wrong fraud prevention authentication tools. Automated tools and AI learning models can help eliminate overall friction for consumers and improve the digital experience, while also providing more effective fraud detection. With robust authentication and clear transaction context, it becomes possible to dramatically reduce fraud and increase transaction success rates. While chargeback abuse and fraud are persistent challenges, new opportunities are available to issuers to combat increasingly sophisticated attempts in their earliest stages with the right combination of 3DS solutions, risk insights authentication, and modern authentication methods. FIs must act now – failure could risk further eroding already pressured margins, and customers looking to competitors that deliver more secure and user-friendly payment experiences.
Yahoo
17-06-2025
- Business
- Yahoo
Issuers must take urgent action against fraud as chargebacks escalate
Recent data shows that issuers and merchants are struggling with rising chargeback abuse. With all indicators pointing to the already considerable problem growing by a further 24% by 2028, financial institutions (FIs) must act or risk losing both customers and profits. According to the Mastercard's 2025 State of Chargebacks report, abuse of chargebacks is a rapidly growing problem, with both merchants and FIs taking a significant hit. And things are about to get worse. Worldwide, issuers and merchants have seen a 10% increase in chargeback volume in the past year. This rise has been driven by a rapid growth in digitization as consumers lean into the convenience of e-commerce. In addition, the ease of disputing transactions at the click of a button has seen FIs in both the US and UK experiencing a 30% to 40% increase in consumer dispute volumes via their digital channels. In fact, the report suggests that over the next five years, global chargebacks volume is set to grow from $261m in 2025 to reach $324m in 2028. For the US, this means chargebacks will total a staggering $20.47bn in just three years. For issuers, the picture looks even bleaker. Globally, only 28% of their chargebacks are legitimate disputes, while a whopping 72% are fraudulent (59% being third-party fraud, while 13% is first-party fraud). One of the biggest challenges facing FIs when it comes to third-party card-not-present (CNP) fraud that fuels chargebacks is aging infrastructure. Legacy systems are limited in their ability to handle this type of fraud due to outdated architectures, fragmented data, and reliance on rigid rule-based detection. Many systems are also still heavily reliant on manual investigation processes. Tracking fraud is another major headache. The same research found that not all FIs track whether the fraud is first-party or third-party. Misclassification and underreporting could lead to inadequate response strategies and higher operational costs, with FIs burdened by time-consuming and expensive investigations. In fact, some FIs report that they need one full-time employee for every $13,000 to $14,000 in incoming annual cardholder disputes. Issuers can attest: first-party fraud is especially hard to pinpoint. What's more, the cardholder's history may show no prior suspicious activity. Responding to a customer dispute by suggesting that they are lying or committing fraud will hardly help FIs maintain good relationships with their hard-won customers. In the US, for instance, FIs and merchants only win around half of their disputes and, in the absence of forensic proof, they are likely to issue the chargeback – even if the suspicions are valid. Many Fis may not be aware what a significant role an effective 3DS program could play in the fight against chargebacks. Stopping fraud at the point of authentication is the low-hanging fruit in reducing the cost of chargebacks. With the right 3DS access control server (ACS) and modern authentication methods, FIs can combat first-party fraud with forensic proof that the transaction was legitimately authenticated. Moreover, they can tackle third-party fraud by simply detecting fraud more effectively – without adding friction. To reduce the impact of first-party fraud, cryptographic device binding technology is able to link each customer's account to a specific device and app, creating a unique digital signature for every transaction. This allows FIs to prove that a transaction was performed from the legitimate user's device, enabling banks to present strong, tamper-proof evidence to refute first-party fraud claims. To battle third-party fraud, 3DS programs that harness risk-based authentication (RBA) and low- or no-friction authentication methods empower FIs to use strong security that improves the cardholder experience and increases transaction success. However, an FI's 3DS approach should be part of a broader, multi-layered fraud prevention strategy that includes context-aware authentication not only to detect fraud across banking and payment channels more effectively, but also to recognise customers across channels to deliver consistent, streamlined experiences. There has never been a more urgent time for FIs to consider how to update their chargeback reduction strategy. 3DS is an under-appreciated tactic in that regard. If issuers or merchants are concerned that fraud prevention will add friction that negatively affects transaction success, they are using the wrong fraud prevention authentication tools. Automated tools and AI learning models can help eliminate overall friction for consumers and improve the digital experience, while also providing more effective fraud detection. With robust authentication and clear transaction context, it becomes possible to dramatically reduce fraud and increase transaction success rates. While chargeback abuse and fraud are persistent challenges, new opportunities are available to issuers to combat increasingly sophisticated attempts in their earliest stages with the right combination of 3DS solutions, risk insights authentication, and modern authentication methods. FIs must act now – failure could risk further eroding already pressured margins, and customers looking to competitors that deliver more secure and user-friendly payment experiences. Frank Moreno is Chief Marketing Officer at "Issuers must take urgent action against fraud as chargebacks escalate" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
