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New Chargebacks911 study shows common chargeback misconceptions among consumers

Friday 12 January 2024 14:44 CET | News

Chargebacks911, an international chargeback management and prevention company, has released the findings of its 2024 Cardholder Dispute Index.  

According to the company, this study compiles insights from more than 4,000 consumers who have engaged in chargeback processes with their issuing banks in the year 2023. 

Released in partnership with TSG, an analytics and consulting firm in the payments industry, The 2024 Cardholder Dispute Index sheds light on crucial trends, behaviours, and statistics that redefine the landscape of cardholder disputes and payment preferences among buyers.

Chargebacks911, an international chargeback management and prevention company, has released the findings of its 2024 Cardholder Dispute Index.

Officials from Chargebacks911 stated that in this report, they get a glimpse into the mind of the consumer to see what is prompting these invalid disputes so as an industry, it can develop solutions that address the root causes of friendly fraud and not just the symptoms. 

Key revelations from the report

  • Millennials and Gen-Z embrace digital banking: a shift in banking preferences is apparent among individuals under 35, who favour managing finances via mobile apps and exhibit a threefold preference for mobile payments over traditional credit card transactions. This trend signifies an impending industry shift towards mobile-centric financial services as younger demographics mature and exert significant market influence. 

  • Insights into cardholder disputes: the 2024 Cardholder Dispute Index delves into the primary reasons behind cardholder disputes. Factors such as transaction recognition difficulties and convoluted return processes emerge as the top reasons compelling consumers to initiate chargebacks, offering insights for merchants seeking to mitigate disputes. 

  • Disputes vs. Refunds: while 72% of cardholders view chargebacks as a legitimate alternative to merchant refunds, a substantial portion initiates chargebacks without prior merchant contact. The report explores the underlying motivations driving this behaviour, showing aspects influencing cardholders' preference for chargebacks over direct refund requests.  

  • Gradual growth in mobile wallet adoption: the report indicates a growing preference for alternative payment methods. Approximately one in five consumers opt for alternate payment modes, with mobile wallet apps such as Apple Pay and Samsung Pay gaining traction, especially among younger demographics. 

  • Americans disputed USD 83 billion in credit card charges in 2023: the study highlights USD 83.5 billion worth of disputed charges in 2023, revealing an average of 5.7 chargebacks per cardholder, each valued at USD 76. This figure prompts contemplation about the prevalence of fraud, merchant abuse, and evolving consumer behaviour impacting the chargeback process.

About Chargebacks911 

Based in the US, Chargebacks911 seeks to drive profitability for online merchants by decreasing payment disputes and recovering revenue lost to chargeback fraud. Through a proprietary suite of software and service offerings, the company aims to deliver transparent, end-to-end chargeback management solutions backed by the industry’s only performance-based ROI guarantee. 

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Keywords: study, chargebacks, online fraud, friendly fraud, report
Categories: Fraud & Financial Crime
Companies: Chargebacks911
Countries: United States
This article is part of category

Fraud & Financial Crime

Chargebacks911

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