“There are no shortcuts to any place worth going.” – Beverly Sills.
But in today’s e-commerce, shortcuts are showing up in unexpected places, like chargebacks.
Industry reports show 70–79% of chargebacks fall under what’s called friendly fraud; when shoppers dispute purchases, they themselves made. Even Visa has noted in their own reports that first-party misuse can account for up to 75% of all chargebacks.
Sometimes it’s buyer’s remorse, sometimes they forget about a subscription renewal, sometimes it’s just confusion. And sure, in many cases, it’s deliberate.
27% of consumers say they’ve seen posts online encouraging chargeback fraud. TikTok clips, Reddit threads, YouTube videos showing people how to dispute a charge and frame it as a refund hack.
And of course, shoppers are paying attention. Nearly half of Gen Z (47%) and over a third of Millennials (35%) say they’ve come across this kind of content. No wonder surveys show 42% of Gen Z shoppers admit to filing a first-party fraud dispute at least once.
That changes the meaning of a chargeback. For some shoppers, it no longer feels like fraud, and it’s definitely not a last resort. It feels like a shortcut, the quickest way to get money back when refunds take too long, return policies feel like homework, support drags on or maybe even a way to get free money.
Either way, for merchants the result is the same: more disputes, higher costs, and lost trust. To understand how to solve it, we first need to look at why shoppers reach for the chargeback button so quickly and why it’s starting to feel easier than going back to the brand.
Speed wins. Shoppers want refunds fast; many expect money back within 24 hours. If it takes longer, the bank’s dispute option feels easy.
Apps normalize it. Features like Apple Card’s “Report an Issue” make chargebacks feel like normal customer service, not like a last option.
Billing issues. Confusing or unclear billing names on statements make shoppers think charges are fraud, leading to disputes.
Subscription friction. Auto-renewals, unclear cancel options, and slow refunds push customers to file chargebacks instead of contacting the brand.
Platforms reinforce it. Many modern banking and payment apps now include built-in dispute buttons, letting customers file chargebacks instantly without ever contacting the merchant. This conditions shoppers to see the bank as the default problem-solver.
First-party misuse feels normal. First-party/friendly fraud is now one of the most common, just a consumer who decides the bank path is easier than customer support.
Impulse → regret → dispute. Social and BNPL (buy now pay later) can make checkout instant. Buyer’s remorse makes chargebacks instant too.
Social platforms are quietly fueling the chargeback shortcut mindset.
Merchants can’t control buyer’s remorse or TikTok hacks, but they can control how simple and fast the post-purchase experience feels and put checks in place, from clear billing to strong authentication, to reduce fraud before it becomes a dispute.
Many chargebacks happen simply because customers don’t recognize a charge on their statement. If your billing line shows PAYMENT 8392 instead of your store name, it can look suspicious.
👉 Use your brand name, upload your logo where possible, and add a support link or phone number in descriptors so customers know immediately it’s you.
Refund delays often push customers to file disputes while they’re waiting.
👉 Define a clear refund SLA, set processes where possible, and track average refund times so they stay aligned with expectations.
Recurring charges can surprise customers if they don’t expect/forget them.
👉 Send renewal reminders, outline terms clearly, and provide one-click cancellation.
When support is slow or hard to reach, customers take the faster path. Quick access to help can deflect issues before they escalate.
👉 Provide live chat, SMS, or a visible “Don’t recognize this charge?” button on order pages that routes customers directly to your team.
Chargebacks often start when customers don’t feel sure about their order status. If they don’t get confirmation or can’t track a shipment, they may assume the product never shipped.
👉 Fix: Send automatic confirmation emails with order number, product details, and delivery info. Share tracking numbers as soon as they’re available and add delivery photos or signatures where possible.
Chargebacks don’t only come from misunderstandings, some are true fraud. Extra checks at the right points can block unauthorized transactions before they happen.
👉 Use CVV codes, 3D Secure or two-factor authentication on higher-risk orders without slowing down every shopper.
When disputes do happen, evidence is your strongest defense. Without transaction details, delivery confirmation, or communication logs, it’s harder to fight back.
👉 Keep organized records of every order and interaction and use representment to challenge unjustified chargebacks with proof.
Look for trends, like spikes in certain regions, products, or campaigns. catching those signals early helps reduce future disputes.
👉 Regularly review transaction data, look for anomalies, and adjust policies, pricing, or fraud screening where red flags appear.
Not every case needs to turn into a full chargeback. Tools exist to catch and resolve issues before they hit your ratio.
👉 Use pre-dispute alerts, automated resolution systems, or Rapid Dispute Resolution (RDR) to handle low-value cases quickly and efficiently.
When warranties are offered at checkout, customers know what’s covered (accidental damage, defects, breakdowns) and what isn’t. That clarity reduces misunderstandings that often lead to disputes.
Pairing that with shipping protection goes even further. When customers feel confident that any mishap, a defective product, accidental damage, or even a package lost in transit, will be handled fairly, the odds of chargebacks drop significantly.
For example,
A furniture brand added extended warranties with accidental damage coverage. Instead of “my table arrived scratched, I want a refund,” shoppers used the claim process to get a replacement and disputes dropped.
A platform like SureBright ; AI-powered product protection, makes this simple. Coverage is built right into checkout in plain language, so shoppers know exactly what they’re getting and how to claim it, leading to fewer surprises, fewer chargebacks, and stronger trust.
It’s not just protection, it’s peace of mind for customers. For merchants, it means greater reliability, stronger retention, and customers who feel confident buying again.
Say hello to us! We’re here to help make that happen.
Chargebacks won’t disappear, but merchants have more control than it seems. Yes, some are deliberate, shoppers using the system to get a free refund. Those can’t always be stopped.
But many chargebacks aren’t about fraud, they’re about friction. Slow refunds, unclear billing, or complicated returns make the bank feel like the easier option. When you close those gaps, you cut unnecessary disputes and make deliberate ones harder to slip through.
The real advantage for merchants is this: create a post-purchase experience that’s clear, fast, and fair. Do that, and customers won’t look for a shortcut at the bank. They’ll stay with you, and that’s how trust, retention, and reliability grow.
.jpg)
.jpg)