Return fraud is a growing problem which first made it into public news last Christmas. Here it is again, in a Washington Post article titled Return Fraud Earns Retailers' Wrath.
I write about this problem because:
a) it is huge, costing retailers 3 to 5 times as much as bank losses due to credit and debit card fraud,
b) a credit card is almost always used in the process of returning goods, and
c) if card issuers can help retailers solve this problem in a simple, convenient and inexpensive way (unlike the current solutions described in the article mentioned above), they will be making payment cards much more attractive and valuable to retailers, thereby justifying interchange fees in the process.
See my prior posts on how this can be done:
Try this: increase profits by pampering best customers … and firing undesirable customers
You can also click on Return Fraud in the CATEGORIES section on the right of this page.