Merchants to Face More Chargeback Challenges as CNP Fraud Escalates

Vesta white paper explores growing fraud, chargeback burden on merchants

ATLANTA, Georgia — Jan. 20, 2016/PRNewswire/ — Vesta Corporation, a global leader in the field of card-not-present (CNP) transactions, has released a new white paper, “Overcoming the Chargeback Challenge”. Based on recent shifts in online and mobile shopping trends and the corresponding rise in CNP fraud, the paper recommends that merchants reconsider their fraud-prevention strategy.

E-commerce sales are predicted to grow at a 10 percent compounded annual rate over the next five years to $480 billion (Forrester Research). As a result of the growing shift in consumer behavior, chargeback management, and fraud prevention are becoming even more important and expensive for merchants. Vesta’s white paper highlights that in-house chargeback management and fraud-prevention efforts already account for between 13 to 20 percent of merchants’ operational budgets >(Javelin).

“Chargeback management and fraud prevention is a growing operational burden as merchants scale to meet consumer preferences and demands,” said Tom Byrnes, chief marketing officer at Vesta. “However, as businesses scale up and take stock of how much of their non-revenue generating budgets are being spent to manage fraud and chargebacks, they should conduct a cost-benefit analysis of hiring and training dedicated in-house staff versus hiring an experienced third-party solutions provider.”

The new Vesta white paper also explores the benefits of outsourcing and provides guidelines for choosing the right third-party solution provider for merchants who choose that strategy.

“Our research revealed that almost two-thirds of physical goods merchants believe that outsourcing fraud mitigation and chargeback management has become cost effective,” added Byrnes. “We believe working with a third-party solution provider who specializes in end-to-end management of CNP transactions will be the future for online merchants who are already at a higher risk for this type of fraud than their brick-and-mortar peers.”

To download a complimentary copy of Vesta’s new white paper, “Overcoming the Chargeback Challenge,” please visit

About Vesta Corporation:
Vesta Corporation is the global leader of revenue-generating payment solutions for enterprise partners in the telecommunications, media, financial, and digital sectors. The company’s patented fraud protection technology is proven to increase conversion and acceptance while eliminating fraudulent transactions and merchant liability. Vesta has been recognized as a leading innovator in payments technologies, holds multiple patents, and has won numerous awards as one of America’s fastest growing companies. Founded in 1995 and headquartered in Portland, OR, Vesta’s operations span the Americas, Europe and Asia.

Press Contact:
Ian Toner
Communications Strategy Group, on behalf of Vesta Corporation