Chargebacks911, the global authority on dispute resolution and chargeback prevention, today released its 2025 Cardholder Dispute Index — an in-depth analysis of why consumers initiate transaction disputes and how merchants and financial institutions can reduce costly chargebacks.
Drawing on a survey of over 1,200 cardholders in the U.S. and U.K., the report highlights a surge in “friendly fraud” (chargeback misuse), estimated by Visa to comprise up to 75% of all disputes. Chargebacks911 calculates that such misuse costs U.S. merchants over $170 billion annually.
Key findings include:
- Bank-first dispute behavior: 76% of consumers prefer resolving disputes through their bank, with nearly half bypassing merchants entirely.
- Growing trust in banks: 89% trust their bank to handle disputes, and 88% say a successful dispute makes them more likely to file another.
- Digital-native trends: Consumers under 30 are twice as likely to favour mobile wallets, and lead usage in BNPL and free trials—categories prone to disputes.
- Confusing billing descriptors: 40% of cardholders report unrecognized purchases due to unclear statement descriptions, driving friendly fraud.
- “Convenience gap” opportunity: While most shoppers turn to banks first, a sizable group still contacts merchants—presenting an opening for improved communication, clear refund policies, and faster resolutions.
Monica Eaton, CEO of Chargebacks911, said: “This report is about pulling back the curtain on customer behavior. It gives merchants a unique window into the decision-making process behind transaction disputes. With this knowledge, businesses can adapt their practices to prevent chargebacks, enhance transparency, and ultimately improve customer satisfaction all while protecting their bottom line from unnecessary losses.”
Chargebacks911 recommends that merchants:
- Streamline communication with clear billing descriptors and proactive notifications.
- Simplify refund processes to encourage on-site resolution before a dispute is escalated to the bank.
- Monitor dispute triggers (e.g., free trials, BNPL) and adjust policies to reduce misuse.
The 2025 Cardholder Dispute Index complements Chargebacks911’s annual Chargeback Field Report, which surveys merchants’ experiences. Together, these reports deliver a 360° view of the chargeback landscape and equip businesses to minimize disputes and strengthen customer loyalty.
Access the full 2025 Cardholder Dispute Index at
https://chargebacks911.com/cardholder-dispute-index
