Payments Blog

A Merchant’s Perspective: The Problems that Persist After the Holiday Season

The holiday season is perhaps the best time of year for merchants in the digital commerce world, especially now that more and more consumers are choosing to use the digital channel, rather than a physical, brick-and-mortar store to do their holiday shopping. While this has been an excellent development for merchants in this space, there are some problems that have arisen because of this trend.

frustrated with problems young business man working on laptop computer at home

The most prevalent issue that merchants face in the aftermath of a holiday season is chargebacks, which can derail what was previously considered a successful holiday season for an online merchant.

Generally, chargebacks don’t start flowing in until a couple weeks after Christmas, meaning merchants could be basking in the afterglow of a fruitful holiday season when they get hit with a barrage of chargebacks. This occurrence has become so common that the second Tuesday in January has been given an appropriate name: “Chargeback Day.”

The reasoning behind this phenomenon is that cybercriminals often take advantage of unprotected websites in the days immediately before Christmas. Most of the time, it won’t be until after the holiday when these consumers recognize the fraudulent activity and file a chargeback with their issuing bank. Since the chargeback process can take a substantial amount of time, the merchant won’t start to notice them until that second week of January.

Overstocking is also a problem that merchants run into after the holiday season. This might not seem like an issue, but it can create certain cash-flow problems for merchants, since it leaves them with an abundance of products that they may have a hard time getting rid of during the relatively dead, post-holiday shopping season.

While overstocking is generally something that merchants must deal with on their own, Cardinal can help merchants with their chargeback problems before they evolve into a serious issue. The Cardinal Authentication Network helps both merchants and issuers in the fight against fraud, meaning Cardinal can help keep cybercriminals at bay before their actions turn into chargebacks. Over the years, with an intense focus on our craft and a commitment to innovation, Cardinal has been able to deliver outstanding results with the Cardinal Authentication Network.

With the Cardinal Authentication Network, Cardinal puts Authentication First.

Posted by CardinalCommerce

Welcome to the CardinalCommerce blog. Cardinal is a global leader in authenticating digital transactions, with One Connection to drive digital commerce. Our goal for this blog is to provide a platform that will inform and educate our Customers and partners on consumer authentication, payments, mobile commerce, solution design and big data.

Topics: Cardinal Authentication Network, chargebacks, holiday

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