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Chargebacks911’s 2025 Cardholder Dispute Index: New Report Reveals Why Today’s Consumers Dispute Transactions

By Lauren Towner · 15 July 2025

Cardholder Dispute Index 2025 by Chargebacks911 – Consumer transaction trends report
Chargebacks911, the global leader in dispute resolution and chargeback prevention, announced Monday the official release of its 2025 Cardholder Dispute Index. Now in its latest edition, this industry-leading research offers a deep dive into consumer chargeback behavior, revealing critical insights into why cardholders file transaction disputes—and what merchants and financial institutions can do to prevent them.  Based on a comprehensive survey of over 1,200 cardholders across the U.S. and U.K., the report analyzes year-over-year trends in payment preferences, dispute behavior, and the evolving relationship between banks, merchants, and consumers. The data shows a continued increase in chargeback misuse—which Visa estimates can account for up to 75% of all chargebacks—that is driven by convenience, confusion and shifting consumer expectations.  “This report is about pulling back the curtain on customer behavior,” said Monica Eaton, CEO of Chargebacks911. “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.”  By Chargebacks911’s calculations, chargeback fraud and misuse costs merchants more than $170 billion annually in the U.S. alone.  Key takeaways from the 2025 Cardholder Dispute Index include: 
  • Consumers want convenience: 76% of respondents prefer to resolve disputes through their bank, and nearly half admit bypassing the merchant entirely. 
  • Trust in banks is high—and growing: 89% of consumers trust their bank to resolve disputes, and 88% say a successful dispute makes them more likely to file another one. ● Digital-first behaviors are rising: Consumers under 30 are more than twice as likely to prefer mobile wallets than those over 60. Younger consumers also lead in BNPL and free trial usage—two areas prone to dispute friction. 
  • Descriptors matter: 40% of respondents say they often don’t recognize purchases on their statement due to confusing or incomplete billing descriptors—a major driver of friendly fraud. 
  • Merchants have an opportunity: A “convenience gap” exists—while most consumers prefer to contact their bank, many still resolve issues with merchants. This audience can be retained with better communication, clear terms, and easier refund options.
Taken together, these findings reveal a consumer base that is increasingly digital, increasingly impatient, and increasingly empowered by bank tools that make dispute resolution fast and frictionless. At the same time, customer loyalty is being reinforced not through direct merchant engagement, but through repeated satisfaction with bank-mediated outcomes.  According to the experts at Chargebacks911, this presents both a warning and an opportunity for merchants: if they can’t match the speed and simplicity of bank dispute processes, they risk becoming irrelevant in the eyes of their own customers. But by focusing on clarity, responsiveness, and proactive communication, merchants can retain control of the post-transaction experience—and reduce unnecessary chargebacks in the process.  The 2025 Cardholder Dispute Index complements Chargebacks911’s annual Chargeback Field Report, which focuses on merchants’ perspectives. Together, these resources give a 360-degree view of today’s chargeback landscape and are indispensable for merchants looking to reduce disputes, improve operations, and strengthen customer relationships.  To access the full 2025 Cardholder Dispute Index, visit  https://chargebacks911.com/cardholder-dispute-index. 

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