The July 2024 report examines the challenges e-commerce merchants in the U.S. and U.K. face with rising returns, fraud, and chargebacks. High return rates, often 10%–35% of transactions, strain margins, with 21% of merchants reporting over half of returns as abusive or fraudulent. Strong consumer protection laws leave merchants liable, pushing fraud detection at the point of sale. Many use dispute and chargeback avoidance tools, though effectiveness is mixed. First-party fraud remains a major issue, with only half of merchants equipped to detect it. Visa’s CE3.0 and Mastercard’s First-Party Trust aim to address this gap.

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