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Lessons in FinTech: Paving the way for more women in chargebacks

By Monica Eaton, Founder, Chargebacks 911:

  • What is your story and how did you get where you are?

I set up an eCommerce company in the early 2000s. We were growing fast, and our customers liked our products, but I found that chargebacks were seriously cutting into our bottom line. When I investigated them further, I found that many of them were illegitimate and negatively impacting the business, and our cash flow, and ultimately jeopardizing our future. And of those that seemed valid, we could optimize our processes to prevent them. 

I scoured the market looking for solutions,but found that there was nothing capable of addressing friendly fraud or first-party misuse on a larger scale. Things were so bad that we almost had to shut our store down entirely. But rather than giving in, I decided to tackle the problem head-on. Even though I had no formal experience in platform and software development, I was able to create a solution to the problem. In fact, it worked so well that other businesses and banks started coming to us and asking us to consult with them. This was the seed that eventually grew into Chargebacks911.

  • What has been your biggest challenge being a Woman in the FinTech industry?

In general, one of the best lessons I learned, regardless of being a woman in FinTech, was choosing to listen to myself and my own experience over self-professed “experts,” who said it was better not to react and to consider chargebacks a cost of doing business. Even though I knew most of the disputes filed against me were invalid, I was advised not to fight back, and so I didn’t. Months went by, and I was losing more and more money with each chargeback. Finally, I said “enough is enough.” I decided to handle things my own way, which proved to be the right decision.

  • Is there anything you wished you had done differently? 

I wouldn’t do anything differently, but there are many lessons I’ve learned that I use to help guide other young female entrepreneurs. 

Besides perseverance, which is the cornerstone quality of any entrepreneur, I’ve also learned to appreciate the value of developing thick skin, especially being a woman in technology and business. There is never a shortage of nay-sayers and to stay ahead means being willing to consistently challenge the status quo. But being determined to not give up and having the motivation to continue to raise the bar won’t account for much if you aren’t also just as conscientious about improving yourself. I call this, ‘being professional’ – this means being willing to reframe criticisms into constructive feedback and turn obstacles into opportunities. 

Having a good work ethic, an insatiable appetite for improvement, and the discipline to uphold high professional standards is critical to maintaining long-term success. In addition to these attributes, being able to offer guidance to your employees who make mistakes rather than reprimanding them will inspire them to be better so long as your criticism is constructive.  

I really believe that if you commit to these mindsets and are honest with yourself about whether these philosophies are part of your everyday life, then everything else will fall into place. These principles will always serve you well, both in and out of the office

  • Do you think there is enough being done to support and encourage women in tech? but more specifically in FinTech?

I think it’s true that there are certainly barriers in place for women in tech (and FinTech). That’s evidenced by the fact that women earn just 19% of computer science degrees. And, even among that small minority, only 38% of women who earn a degree in computer science will end up working in the field.

I believe that one of the main obstacles is a lack of female role models within our industry. Women who manage to find success in fintech should take it upon themselves to lend a hand to inspire and uplift younger women who wish to walk a similar path. What would help would be for every woman who breaks through the glass ceiling to provide mentorship and build networks among women working in tech.

  • Why do you think there is a lack of women in FinTech?

I think it’s fundamentally a pipeline problem. Many young women are unable to see themselves as potential leaders in the tech industry, so few commit to learning the skills needed to get in on the ground floor.

I’m not big on magic wands, but I do believe in education and finding self-worth through effort and hard work. That’s why I created an organization in the U.S. called Paid for Grades, which provides financial incentives for students who raise their literacy level and overall GPA. I’ve also established the LIFT: Elevating Women Through Mentorship program, a free mentorship program that seeks to bridge the gap between established women in the FinTech industry, and those who are still trying to find their way.

Once we foster a wave of young women who are applying to colleges for degrees in STEM, we can start to move toward a truly meritocratic workforce that reflects the real world.

  • Why should businesses pay more attention to chargebacks?

Quite simply, it’s a problem that has exploded in the wake of the pandemic where many consumers were forced to shop online where fraud is rife. This has led to not only more fraudulent transactions, but a drastic increase in friendly fraud and first-party misuse, which is at an all-time high.

Rising chargeback rates and higher post-transactional fraud aren’t exactly news. Merchants, banks, and processors are aware that a growing number of disputes are being filed without legitimate cause.

Being aware of the chargeback problem, however, does not inherently mean that merchants comprehend the seriousness of the situation. Far more attention is focused on criminal fraud threats like ID theft. This is a legitimate concern, of course, but merchants’ biggest threats are still their own customers.

A post-pandemic drop in card-not-present fraud never materialized; in fact, we found in our recent Chargeback Field Report that of the 70% of respondents who noted movement in friendly fraud levels, twice as many said that friendly fraud had increased, not decreased. There is nothing to make us believe this trend will stop, or even slow down, until merchants and consumers are both protected equally. 

Businesses need to understand that consumer behavior in the eCommerce space highlights the need for professional chargeback management, as well as the value it can provide.

  • How is AI transforming the chargebacks industry? Is it creating better or worse opportunities

To combat the rise of chargeback fraud and first-party misuse, we must focus on the evolution of technology and shift in consumer behaviors.

Our recent Field Report also found that 74 percent of the merchants have seen first-party misuse rise by an average of 19 percent, but many merchants don’t engage in proactive management strategies that big data and technology platforms such as Chargebacks911 can support. 

Effective fraud prevention requires a two-prong approach.  First, businesses must engage in a layered strategy that incorporates rich data analytics and decisioning models that use machine learning and/or artificial intelligence (AI).  Secondly, to establish and maintain accurate decisions, businesses require outcome feedback and insights. Chargeback and dispute data is arguably the most valuable insight to help train fraud models – but real-time access to this information and interpretation from dispute professionals continues to be a pain point. 

  • How do you see the industry progressing and what do you see as one of the biggest things happening right now?

The future is tech. Utilizing platform technologies to automate the retrieval and response mechanisms is vital to ensuring businesses can address evolving demands, changing fraud landscapes and expanding datasets. For example, if a business builds AI models supported by big data, anti-fraud organizations can detect and prevent fraud attacks sooner, with faster and more comprehensive data insights. 

Embracing this technology can not only prevent chargebacks but also reputational damage and lost revenue.

About Author:

Monica Eaton is the Founder and CEO of Chargebacks911 and Fi911, as well as Chief Information Officer of Global Risk Technologies. Monica has worked tirelessly to educate merchants and financial institutions about hidden threats in the rapidly changing payment fraud landscape. Leading Chargebacks911, was founded in Tampa Bay, Florida, expanding internationally also to become Europe’s first chargeback remediation specialist to tackle the chargeback fraud problem. In ten years, Chargebacks911 has successfully protected more than 10 billion online transactions and has recovered over $1 billion in chargeback fraud.  

Recognizing that the impact of chargebacks goes beyond merchants, Fi911 provides unrivaled support to financial institutions with innovative back-office management technologies. Fi911’s pioneering DisputeLab™ tool streamlines chargeback management for acquirers, automating legacy processes and standardizing methods that simplify and speed the end-to-end workflow, improving the customer experience and accountability for all stakeholders. 

Monica is a passionate diversity advocate committed to developing and sharing innovative solutions that empower the global fintech space. She has earned numerous awards, distinctions and special recognitions, including the Retail Systems Awards, where she received the ‘Outstanding Individual Achievement Award’ and was named ‘Global Leader of the Year’ at the Women in IT Awards.