How Cardholder Misconduct is Driving Up Costs for Consumers and Leading to Poorer Customer Experience

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The recently published 2024 Chargeback Field Report surveyed nearly 300 retailers, from small businesses to enterprise merchants, about their experiences with payment disputes, also known as chargebacks.

Merchants face significant costs due to these disputes; in 2023 alone, sellers globally lost an estimated $117.46 billion to cardholder disputes. To make matters worse, a growing number of disputes result from first-party misuse of the chargeback process, or “friendly fraud.” This can be any situation in which a cardholder disputes a transaction without having a valid reason to do so.

Merchants were asked to describe their concerns about first-party chargeback misuse as part of

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