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Addressing e-commerce chargebacks effectively: An interview with Gary Cardone
Journal of Payments Strategy & Systems,
9
(1),
12-21
(2015)
Abstract
Adhering to the Consumer Financial Protection Bureau (CFPB) regulations is challenging for banks and credit card issuers, who face difficulties at every step, including financial losses related to chargebacks. Implementing an automated system to alleviate these challenges presents its own problems, says Gary Cardone, CEO of eConsumerServices, who recommends that banks and issuers bring in a third party to handle the process. Judgment is needed over disputes in order to resolve them quickly; otherwise, when merchants fight back and consumers become upset, automation becomes the problem, rather than the solution. Cardone says partnering with a transaction dispute mediator is a viable solution that will help mitigate the rising costs of chargebacks and lower consumer dissatisfaction, and the need for the CFPB to step in. Partnering with a transaction dispute mediator will ultimately benefit and help retain consumers by providing them with personalised service, ongoing communication and fast response times.
Keywords: United States; CFPB; Consumer Financial Protection Bureau; credit card; refunds; disputes; chargebacks; dispute mediation; friendly fraud
The full article is available to subscribers to the journal.
Author's Biography
Gary Cardone is the CEO of eConsumerServices, an online mediation service that works to resolve transaction issues effectively and efficiently between merchants, consumers and banks. eConsumerServices focuses on the cardholder or consumer in order to encourage transactional resolution before it progresses to a chargeback. Cardone has had 25 years of experience in commodities trading associated with natural gas and electricity, providing him with a unique viewpoint on the future of global trade. His career began with Natural Gas Clearinghouse, a company that transformed the way in which industrial and residential users acquired energy, providing greater choice for users. The company went on to become a global competitor and Fortune 50 company as Dynergy, Inc. Cardone’s mission has been to help the industry become better prepared for the accelerating global expansion of online trade, aiding merchants, processors and consumers through up-to-date platforms, systems, tools and processes to reduce leakage, losses and risks, and improve efficiencies.
Diederik Bruggink is Managing Director of Bruggink Consultancy and is an independent international expert in cards, payments, and market infrastructures. During his career, he has led and worked on several international and high-visibility projects, mainly with a focus on cashless payments, across the whole payments value chain, from (e-commerce) merchant acquisition through to issuing banks and within card switching and card processing organisations. He was one of the key authors of the first three editions of the ‘World Payments Report’, and he makes regular appearances on conferences in the cards and payments industry. He is a member of the Editorial Board of the Journal of Payments Strategy & Systems.
