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Verifi Issues Eye-Opening Report Illustrating the Damaging Effects of Chargebacks

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Verifi Issues Eye-Opening Report Illustrating the Damaging Effects of Chargebacks

 $31 Billion Chargeback Problem Facing Consumers, Merchants & Issuing Banks 

Verifi issued a new report that highlights the urgent need for collaboration between merchants, issuing banks and consumers. This in-depth analysis brings to focus the alarming scope and lasting effects that disputes and chargebacks present throughout the card payments ecosystem.

Verifi commissioned the report with Javelin Strategy & Research to examine the root causes of disputes, exploring how consumer behaviour changes based on experiences in the dispute process and the immediate, lasting and significant impact on merchants and issuers. The report found that consumer disputes and chargebacks created $31 billion in financial losses in 2017, with merchants bearing nearly $19 billion of the costs and issuing banks incurring the remaining $12 billion.

Entitled “The Chargeback Triangle,” the 36-page report provides a comprehensive view of the present chargeback lifecycle, as well as a detailed breakdown of the significant chargeback costs and negative impacts to issuers and merchants. More important, the report helps reveal opportunities to streamline the dispute process, and – in some cases – how to avoid chargebacks altogether.

Some key findings include:

  • Consumers reduce purchase behavior with a merchant by as much as 62% following a chargeback – and nearly two-thirds of consumers are more cautious about patronising merchants similar to the one with which the dispute occurred.
  • When the resolution process is drawn out, blame tends to shift toward the issuer that stands to lose top-of-wallet status and possible loss of consumer.
  • Consumers largely call the bank to initiate a dispute. Assessing friendly fraud risk can be a challenge for issuers, and both merchants and issuers agree that it has become too easy for consumers to dispute transactions.
  • Chargebacks can be prevented more than 80% of the time when the consumer contacts the merchant first with a dispute
  • For every dollar in a disputed transaction, merchants and issuers incur an additional $1.50 in costs, including technology, personnel, and external resources.

Matthew Katz, CEO at Verifi, stated, “Some of the findings can be hard to accept, but the report validates the innovation and services we provide are consistent with the need to help reduce the high and unnecessary costs that disputes and chargebacks create for all parties in the payments chain. The report clearly indicates that collaboration between issuers, merchants and consumers is critical to resolve disputes effectively and avoid the direct and extended costs chargebacks and consumer-initiated “friendly fraud” cause for merchant and issuers alike. In the end, the consumer pays the price in the form of higher purchase prices as well.”

Click here to obtain the research report, “The Chargeback Triangle.”

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Bitcoin, ether hit fresh highs

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Bitcoin, ether hit fresh highs 1

SINGAPORE (Reuters) – Bitcoin hit a fresh high in Asian trading on Saturday, extending a two-month rally that saw its market capitalisation cross $1 trillion a day earlier.

The world’s most popular cryptocurrency rose to an record $56,620, taking its weekly gain to 18%. It has surged more than 92% this year.

Bitcoin’s gains have been fuelled by evidence it is gaining acceptance among mainstream investors and companies, such as Tesla Inc, Mastercard Inc and BNY Mellon.

Ether, the second-largest cryptocurrency by market capitalization and daily volume, hit a record $2,040.62, for a weekly gain of about 12%.

Ether is the digital currency or token that facilitates transactions on the ethereum blockchain. In the crypto world, the terms ether and ethereum have become interchangeable.

Ether futures contracts launched on derivatives exchange CME earlier this month.

(Reporting by Vidya Ranganathan; Editing by William Mallard)

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World Bank pushing for standard vaccine contracts, more disclosure from makers

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World Bank pushing for standard vaccine contracts, more disclosure from makers 2

By Andrea Shalal

WASHINGTON (Reuters) – The World Bank is working to standardize COVID-19 vaccine contracts that countries are signing with drug makers, and is pushing manufacturers to be more open about where doses are headed, as it races to get more vaccines to poor countries, the bank’s president said on Friday.

World Bank President David Malpass told Reuters he expected the bank’s board to have approved $1.6 billion in vaccine funding for 12 countries, including the Philippines, Bangladesh, Tunisia and Ethiopia, by the end of March, with 30 more to follow shortly thereafter.

The bank is working with local governments to identify and fill gaps in distribution capacity, after they purchase vaccines under a $12 billion World Bank program, and also to standardize the contracts they are signing with manufacturers, he said.

The bank’s International Finance Corp, its private financing arm, has $4 billion to invest in expanding existing production plants or building new ones, including in developed countries, but needs more data on where current production is headed, he said.

“We are eager to be investing in new capacity, but it’s hard to do because you don’t know how much of the existing capacity is already committed to the various off-takers,” Malpass said in an interview with Reuters. New or expanded plants could be used to produce other types of vaccinations in the future, he said.

The bank’s funds could be used to expand plants in advanced economies, if the production was earmarked for developing nations, he said.

Malpass welcomed Friday’s pledge by the Group of Seven rich countries to intensify cooperation on the pandemic, saying it could help jump-start deliveries of vaccines to poorer countries, which are lagging far behind rich countries in getting shots in arms.

Data compiled by Our World In Data, a scientific online publication, showed Israel was leading the world in COVID-19 vaccinations, with nearly 82 of 100 people vaccinated, while India and Bangladesh reported less than one person per 100, Many African countries have not started at all.

Malpass said he was heartened by news about new vaccines coming down the road, and about Pfizer Inc and BioNTech SE seeking permission to store their vaccine at higher temperatures, which would ease another obstacle to deliveries in lower-income countries.

(Reporting by Andrea Shalal; Editing by Heather Timmons and Leslie Adler)

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Google to evaluate executive performance on diversity, inclusion

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Google to evaluate executive performance on diversity, inclusion 3

By Paresh Dave

(Reuters) – Alphabet Inc’s Google will evaluate the performance of its vice presidents and above on team diversity and inclusion starting this year, the company said on Friday in one of several responses to concerns about its treatment of a Black scientist.

Timnit Gebru, co-leader of Google’s ethical artificial intelligence research team, said in December that Google abruptly fired her after she criticized its diversity efforts and threatened to resign.

Alphabet and Google Chief Executive Sundar Pichai ordered a review of the situation. While Google declined to share specific findings, the company announced on Friday it will engage human resources specialists during sensitive employee departures.

Pichai in June said that by 2025, Google aims to have 30% more of its leaders come from underrepresented groups, with a focus on Black, Latinx and Native American leaders in the United States and female technical leaders globally. About 96% of Google’s U.S. leaders at the time were white or Asian, and 73% globally were men.

As a result of the investigation, the company also expanded a commitment announced in June to devote more resources to retaining and promoting existing employees, including by expanding a team addressing disputes among workers and their managers.

The diversity component of executive performance reviews was not previously announced, and the company did not immediately share details about what would be measured and how pay would be affected.

Alphabet for years had rejected proposals from shareholders and employees to set diversity goals and tie executive pay to them.

Irene Knapp, a former Google employee who advocated for one such proposal at a 2018 shareholder meeting, said on Friday, “I am pleased that they met our demand from 2018, which was a bare minimum that should have been easy to do immediately.”

Evaluating managers on diversity goals is becoming more commonplace. McDonald’s Corp on Thursday tied executive bonuses to diversity.

(Reporting by Paresh Dave; Editing by Cynthia Osterman)

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