The digital age that we currently live in has created a plethora of new and innovative technologies and opportunities that make day to day living much easier in many ways. Unfortunately, it has also created new worlds of theft, fraud, and cyber security we have to be constantly aware of. One of the newest trends right now, for example, is credit card not present chargeback.

Chargeback credit card services refers to the process of returning funds to the consumer when it is believed some sort of fraud or wrongdoing was at fault for the purchase. This action is done forcibly by the issuing chargeback credit card bank. There was somewhere in the neighborhood of $16.31 billion in worldwide fraud losses from credit/payment card fraud in 2014 alone. By the year 2020 that number is expected to reach $35.45 billion.

Here are the four main types of reasons chargeback credit card processes can occur.

1. Technical: As the name suggests, this reason has to do with some of the more technical aspects of chargeback credit cards such as expired authorization, non-sufficient funds, or bank processing error of some kind.
2. Clerical: Errors with credit cards doesn’t always mean blatant malice. Sometimes it can be as simple as clerical errors that cause chargeback credit card processes. Duplicate billing, incorrect amount billed, or a refund that was never issued could all be clerical reasons.
3. Quality: This reason is where chargeback really starts to delve into the world of fraud. When a consumer claims to have never received the goods as promised at the time of purchase or not in the condition promised is when this action occurs.
4. Fraud: This is the actual fraud most people think of when they think about credit card chargeback. This occurs when a consumer claims to have never authorized or made the purchase in question altogether. This can also be considered identity fraud.

Approximately 54% of data breaches in 2014 related to identity theft, 17% were aimed at financial access, and 11% were after account access. As gone over in this piece though there are times when a chargeback credit card function can be the result of things other than blatant fraud or identity theft. For this reason it’s important to always keep track of your purchases throughout the entire process.