- High Average Transaction Value: Furniture items tend to have higher price points compared to many other consumer goods. High transaction values can attract fraudulent activities or disputes.
- Customization and Special Orders: Furniture often involves customization and special orders, which can lead to discrepancies between customer expectations and the delivered product. This increases the likelihood of disputes and chargebacks.
- Long Delivery Times: Furniture may have longer delivery times, and customers may become impatient or dissatisfied during the waiting period. This can result in chargebacks or disputes if customers feel the product did not meet their expectations.
- Product Quality and Returns: Customers might be dissatisfied with the quality of the furniture upon delivery, leading to a higher rate of product returns. Returns and refunds can be problematic for payment processors, as they increase the risk of chargebacks.
- Fraudulent Activities: High-value items like furniture can attract fraudulent transactions, including stolen credit card information or identity theft. Fraudulent activities are a significant concern for payment processors, as they can result in financial losses.
- Market Competition: The furniture industry is competitive, and some merchants may resort to aggressive sales tactics or marketing strategies that can lead to customer dissatisfaction and chargebacks.
- Economic Factors: Economic downturns can impact the furniture industry, affecting the financial stability of furniture merchants. Economic uncertainty can be a red flag for payment processors.
