Clarity Is Key: The Link Between Transparent Billing and Chargeback Reduction

Download the Study How Card Disputes Are an Opportunity to Cultivate Customer Loyalty

Unexpected charges are a reality that 30% of consumers experienced in just the last 12 months. These charges could include either outright fraud or some level of ambiguity. For example, a cardholder may not recognize the charge amount or merchant. Providing clarity on such credit card charges can prevent charge disputes from happening.

Cardholders who initiated a charge dispute due to unclear charges were less satisfied with its resolution. In fact, 29% were unsatisfied. The resulting confusion is directly connected to the cardholder’s dissatisfaction with the handling of the dispute.

Furthermore, our data shows that most consumers plan to continue using the card they initiated a dispute with. This is particularly true for cardholders who use their credit cards frequently. Somewhat paradoxically, card disputes provide an opportunity for financial institutions to improve their customer loyalty.

These are just some of the findings detailed in “How Card Disputes Are an Opportunity to Cultivate Customer Loyalty,” a PYMNTS Intelligence and Banyan collaboration. The report focuses on consumers’ experiences with credit card disputes and how they impact their satisfaction and loyalty to a card. It draws on insights from a survey of 2,691 U.S. consumer conducted from Aug. 18 to Aug. 27.

Inside “How Card Disputes Are an Opportunity to Cultivate Customer Loyalty”

Reasons consumers cite for disputing charges on their credit cards

Insights into consumers’ experiences with disputing charges on their credit cards

Charge dispute scenarios that positively and negatively impact consumer loyalty

The likelihood consumers will continue to use a credit card following a credit card charge dispute

How charge disputes impact merchants and consumers’ shopping behavior

This report includes crucial information for card providers. How they handle chargebacks and disputes has a direct impact on their customer retention. In fact, providers should consider a chargeback prevention strategy as a part of a customer retention strategy.

Download the report to learn more about consumers’ experiences with credit card charge disputes.