The extended holiday season can be a double-edged sword. Obviously, great sales numbers mean higher profits, but what looks like booming business in November and December can very easily turn into a mountain of chargebacks in January and February.

While chargebacks are an ongoing issue, many of the most common causes of chargebacks are made worse by the events leading up to the holiday season:

Express Orders

Holiday sales usually come with a deadline: customers want their order by a specific date. For that reason, many retailers offer express shipping at no additional cost this time of year.

But the situation works great for fraudsters, too, as they are usually in a hurry to get their illegally ordered merchandise. They know that the faster they receive their order, the quicker they can disappear, and the harder it will be to track or recover goods once the fraud is discovered.

Chargeback Lag

Ironically, the hectic pace of the holidays often provides a longer window of time before cardholders notices discrepancies. With so much going on, the average person finds it easy to get lax about carefully checking statements. Many opt to put off scrutiny until the new year when things calm down.