The holiday season is here again, and merchants are preparing for an onslaught of shoppers and anticipating increased sales. Unfortunately, returns will put a dent in their profits and many of the requests will be fraudulent. According to a recent report issued by the National Retail Federation (NRF) refund claims fraud cost retailers an estimated $25B in 2020.
Returns have always been seen as a “necessary evil” by retailers–especially right after the holidays. However, with the increase in online shopping due to the pandemic, refund abuse has become a big problem that experts predict will get even bigger.
In a recent interview with Independent Retailer, Jeff Wixted, VP, Marketing & Client Solutions provided insight on why refunds abuse is here to stay and explained what measures merchants should take to fight it so they can process returns and refunds for legitimate customers and avoid fraud losses. Read the full story for more information.