Credit cards pose highest fraud risk for e-commerce in Colombia

A study conducted by Koin in partnership with Gmattos, presented at the 60th Asobancaria Banking Convention in Cartagena, identifies credit cards as the primary source of fraud risk for e-commerce in Colombia, Brazil, and Mexico.

The research highlights that under global payment network rules, merchants bear 100% of the financial responsibility for disputed credit card transactions through chargebacks. This risk differs from debit cards or immediate transfer systems, such as PSE in Colombia, where responsibility often falls on issuing banks or is distributed differently.

Small and medium-sized enterprises in Colombia frequently face losses due to stolen data. To avoid the costs of chargebacks, many merchants preemptively cancel suspicious transactions, which can lead to the rejection of legitimate customers. The report suggests that adopting artificial intelligence-based verification engines could help filter malicious operations without harming sales.