Chargebacks911, a global provider of dispute resolution and chargeback prevention technology, has released its 2025 Cardholder Dispute Index, offering insights into consumer chargeback behavior and strategies for prevention for merchants and financial institutions.
This latest edition of the industry research is based on a comprehensive survey of over 1,200 cardholders across the U.S. and U.K. It analyzes year-over-year trends in payment preferences, dispute behavior, and the evolving relationship among banks, merchants, and consumers. The report indicates a continued increase in chargeback misuse, which Visa estimates can account for up to 75% of all chargebacks, driven by factors such as convenience, confusion, and shifting consumer expectations.
Monica Eaton, CEO of Chargebacks911, stated, “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 estimates that chargeback fraud and misuse costs merchants more than $170 billion annually in the U.S. alone.
Key findings from the 2025 Cardholder Dispute Index include:
* **Consumer Preference for Convenience**: 76% of respondents prefer to resolve disputes through their bank, with nearly half admitting to bypassing the merchant entirely.
* **High and Growing Trust in Banks**: 89% of consumers trust their bank to resolve disputes, and 88% report that a successful dispute makes them more likely to file another.
* **Rising Digital-First Behaviors**: Consumers under 30 are more than twice as likely to prefer mobile wallets compared to those over 60. Younger consumers also show higher usage of Buy Now, Pay Later (BNPL) services and free trials, areas identified as prone to dispute friction.
* **Importance of Descriptors**: 40% of respondents frequently do not recognize purchases on their statements due to confusing or incomplete billing descriptors, a significant factor contributing to friendly fraud.
* **Merchant Opportunity**: A “convenience gap” exists, indicating that while most consumers prefer contacting their bank, many still resolve issues with merchants. This segment can be retained through improved communication, clear terms, and accessible refund options.
These findings collectively suggest a consumer base that is increasingly digital, prioritizes speed, and is empowered by bank tools designed for fast and frictionless dispute resolution. Concurrently, customer loyalty is being reinforced by repeated satisfactory outcomes mediated by banks rather than direct merchant engagement. According to Chargebacks911, this situation presents both a challenge and an opportunity for merchants: a failure to match the speed and simplicity of bank dispute processes may lead to irrelevance in the eyes of their customers. However, by prioritizing clarity, responsiveness, and proactive communication, merchants can maintain control over the post-transaction experience and reduce unnecessary chargebacks.
The 2025 Cardholder Dispute Index supplements Chargebacks911’s annual Chargeback Field Report, which focuses on merchant perspectives. Together, these resources aim to provide a comprehensive view of the current chargeback landscape, assisting merchants in reducing disputes, optimizing operations, and strengthening customer relationships.
The full 2025 Cardholder Dispute Index can be accessed by visiting https://chargebacks911.com/cardholder-dispute-index.
Chargebacks911 provides chargeback prevention and remediation technology globally. The company offers an end-to-end platform designed to counter post-transactional fraud and chargeback misuse for merchants and financial institutions. Chargebacks911 safeguards over 2.4 billion transactions annually for clients in 87 countries, supporting more than 2.5 million merchants. For additional information on Chargebacks911’s dispute management solutions, visit https://chargebacks911.com.
