NEWS — EVENT PREVIEW
Anti-fraud experts will speak at a London forum next week. LEE HAYHURST previews the event, sponsored by Travel Weekly
PROFiT
Prevention of Fraud in Travel (Profit) group will host a Chargeback Seminar at which experts will offer advice on how travel companies can limit their exposure.
Fees Travel Weekly reported in July that Visa, one of the major global credit-card processing firms, is to bring in a £10 fee per chargeback. This will be levied on the
credit card issuer (or bank) and is Visa’s way of putting pressure on acquirers to reduce fraud. The fear for travel firms is that their susceptibility to fraud due to the high level of cardholder-not-present transactions will see them given less-favourable merchant terms. Barry Gooch, chairman of
Profit, said: “We understand that payment cards have seen a sharp rise in chargebacks from the travel sector over the last year and the prediction that this will rise again
Prevention Of Fraud in Travel
Concern about the impact of rising levels of fraud in the travel sector has prompted an industry group to run a special seminar on credit-card chargebacks. Chargebacks are potentially a major issue in travel, especially as increasing numbers of customers are looking to the protection their card provider offers for transactions. On September 11, the
over the next year is worrying. “We could not sit back and watch as the costs to travel companies from this fraud issue soar and so we have gathered together an expert group of speakers to help the industry reduce exposure to the threat that it faces.”
Speakers The Chargeback Seminar will be opened by a speaker from
“When the law was devised,
it was not envisaged that chargebacks would become an issue for retailers”
Financial Fraud Action UK, the payment- card sector’s trade body. This session will outline the current
payment card landscape and trends and give details of analysis which predicts
that chargebacks could double in number over the next 12 months. Delegates will also hear from
Barclaycard, the largest provider of payment gateways to the travel industry, about steps that
WHAT IS A CHARGEBACK?
A chargeback occurs where a customer has had money debited from their credit card which they dispute. If the dispute is upheld it results in an automatic refund being made to the customer by the card issuing company, usually a bank. Chargebacks are a legal provision under section 75 of Consumer
Credit legislation passed in the 1970s. Unique to UK law, chargebacks provide a remedy for consumers where the supplier has ceased trading, or has refused to resolve a genuine problem. • Up to 65% of chargebacks are where a customer has reported an unauthorised use of their credit card. This is usually as a result of the card being stolen or cloned.
• Chargebacks may also occur where the legitimate cardholder decides to commit a fraud on the merchant.
• Non-fraud reasons for a cardholder making a chargeback claim include where goods or services are not up to standard, are faulty, did not arrive, or the customer has been charged twice.
14 •
travelweekly.co.uk — 4 September 2014
can be taken to reduce the risk of a transaction becoming a chargeback and how to increase the success rate when mounting a challenge. The card industry provides SAFE
and TC40 reports for retailers to help identify fraudulent transactions, but the problem for the travel trade is that these take up to seven days to be compiled – by the time they are circulated the flight, hotel and ancillary services are generally booked and may not be refundable.
In addition to speakers from
the payment card industry, the seminar will feature two products that could help reduce fraudulent chargebacks by augmenting the card industry’s own products. Ethoca will showcase its
web-based solution, while the FI Network will talk about how its FIN tool, which was specifically developed for the travel industry, can help significantly reduce fraud that results in chargebacks.
CHARGEBACK SEMINAR Places at the seminar are still available, priced £45 or free to PROFiT members. To apply, or to find out more about PROFiT, email:
accounts@profit.uk.com
EVENT PREVIEW
Learn to fight fraud at Chargeback Seminar
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