Chargeback fraud on the rise among independent repairers
Independent repairers have been urged to guard a significant rise in chargeback fraud.
Chargeback fraud involves a customer making a booking, paying by card and having the work completed before contacting their bank to reverse the payment.
According to global independent tyre dealer and car maintenance network Point S, automotive businesses are increasingly being targeted for this type of fraud, with the financial implications multi-layered.
Apart from total cost of parts and labour being reversed, banks also charge £28 for every disputed transaction, while businesses also face the administrative burden of challenging the claim and those with chargeback rates over one per cent risk higher card processing fees.
Growing threat
Ali Yilmaz, Managing Director of Point S UK said: “This is a growing threat that independent garages cannot afford to ignore. Fraudsters are opportunistic. Businesses that are seen to have robust payment procedures in place are far less likely to be targeted.
“Every workshop should be aware of the risk and take the necessary steps to protect their business and their margins.”
