Private courier UPS has declared January 2nd National Returns Day, the busiest package return day of the year, and prepared to handle nearly 2 million packages representing returned gifts on this day alone. We take a look at online order return rates and volume while discussing the costs, and even benefits, of reverse logistics operations for eCommerce merchants.
Mobile and eCommerce shopping hit new highs this holiday season as Cyber Monday yet again beat its own record as the largest online shopping day in the U.S. with over $9.4 billion in eCommerce retail sales. This followed a record day for Black Friday which reached $7.4 billion in online sales while U.S. eCommerce volume on each day grew by nearly 20 percent year-over-year. One channel’s gain is another’s loss, however, as total holiday sales had a much more modest 3.4 percent growth. Department stores saw total holiday retail sales fall nearly two percent, despite growth of 7 percent in online sales. The biggest winner was mobile holiday sales, which increased 55 percent on CyberMonday year-over-year.
Wawa announced a large-scale malware compromise breaching payment cards processed at the pump or inside between March 4 and December 12, 2019, also admitting that the company “does not have sufficient information to determine” how many payment cards were exposed. The gas station and convenience store has more than 850 locations along the east coast with $10.6 billion in annual revenue.
The U.S. Central Bank will embark on its biggest investment in payments since becoming an ACH operator more than forty years ago. FedNow will be an interbank real-time gross settlement service (RTGS) with integrated clearing. It will support 24/7 real-time transfers of up to $25,000 between any banks in the U.S. and will be available by 2023 or 2024.
Klarna, a payment company offering micro credit for online transactions like PayPal Credit, serves consumers and merchants in Europe and the United States while preparing to launch in Australia and New Zealand. They recently announced an equity funding round raising $460 million, valuing the credit terms alternative payment provider at $5.5 billion.
The number of Klarna users in the U.S. is growing by 6 million per year.
More than 3,800 data breaches occurred in the first half of this year, a 54 percent increase from the first half of 2018. The number of consumer records compromised in data breaches increased 52 percent over this time, with 4.1 billion records compromised in the first half of 2019 and 3.2 billion of those coming from just eight breaches.
This comes as the Identity Theft Resource Center tallied the most records compromised in 2018 and highest number of data breaches in 2017 in more than a decade.
Unable to catch up to Apple, Samsung or Google Play, Chase Pay was used by less than 10 percent of Chase cardholders in the last 90 days, and the mobile app will be discontinued in early 2020.
Chase Pay launched in November 2016 and although being discontinued most of its features have been adopted elsewhere. While the mobile app is being shut down, the ability to login with Chase to pay on an eCommerce website displaying the Chase Pay logo will remain. Other Chase Pay features are available in Chase’s online banking app.
More than 40 States Have Enacted Economic Nexus Legislation to Collect Online Sales Tax from Merchants without Physical Presence
Forty-two states plus the District of Columbia have laws in place, already in effect or scheduled to take effect soon, that increase the collection of online sales tax by defining an Economic Nexus or Sales Nexus based on the number of transactions and/or the dollar value of transactions made by consumers in a given state during the year.
Visa announced their acquisition of Verifi on June 28th, about three months after MasterCard announced their acquisition of Ethoca. Both organizations offer issuer alert services that notify merchants of potential disputes before they become chargebacks. Visa’s acquisition comes over a year after overhauling their dispute process while MasterCard is in the process of doing the same.
To maintain compliance with the European Union’s Second Payment Services Directive (PSD2), merchants in Europe will have to perform Secure Consumer Authentication on most non-recurring transactions greater than €30 within the European Economic Area (EAA) starting September 14th. Secure Consumer Authentication, or SCA, refers to consumer authentication services with two factor authentication facilitated by a dynamic code or biometric verification.
These new regulations coming into effect on September 14th will increase the use of consumer authentication programs as 3D Secure 2.0 will be the primary authentication method for meeting these requirements. SCA requires two-factor authentication and banks will decline transactions that don’t complete this authentication.