According to a new report, chargebacks in the U.S. and U.K. are reaching “crisis” levels, with consumers in the U.S. much more likely to file one or more chargebacks. In Customer Attitudes Toward Chargebacks in 2022, chargeback mitigation firm Justt found 67 percent of U.S. shoppers filed a chargeback compared with 44 percent in the U.K.
Consumers in both countries have been educated on the protections they enjoy when they use major credit cards and take those protections into consideration when they shop, noted Roenen Ben-Ami, co-founder and chief risk officer at Justt.
“This survey shows that consumers on both sides of the Atlantic increasingly see chargebacks as simply part and parcel of the retail process—a protection they’re entitled to avail themselves of if they feel in any way disappointed by their shopping experience,” Ben-Ami said. “With new retail practices and payment technologies only exacerbating the chargeback problem, retailers urgently need to find a scalable and effective mitigation solution to help them effectively manage transaction disputes.”
Both the type of product purchased and the payment method can contribute to friendly fraud chargebacks, the report said. Of those polled in the U.S., 50 percent had filed a chargeback for an online or mobile game purchase, while 36 percent had done so on a travel-related transaction. And 60 percent had disputed a purchase made using BNPL.