Shoppers dispute millions of credit-card charges. They usually win.

  • Disputes over credit-card charges have surged as shoppers learn how easy it is to deploy them
  • Consumers disputed about 105 million charges with credit-card issuers in the U.S. last year, worth an estimated $11 billion
  • Cardholders misuse the process to dispute legitimate charges, known as ‘friendly fraud’
  • Merchants have to pay a fee for each dispute, win or lose
  • Chargebacks cost an average of $37 to resolve

Credit-card disputes have become a popular way for shoppers to win retail arguments and settle grievances. Last year, consumers disputed about 105 million charges in the U.S., worth an estimated $11 billion. This surge in disputes is a sign that people are becoming more aware of their rights as cardholders. However, there is also a rise in ‘friendly fraud’, where cardholders misuse the process to dispute legitimate charges. Merchants have to pay a fee for each dispute, which can be costly. The average cost to resolve a dispute is $37. Overall, credit-card disputes have become easy to deploy, abused, and costly for merchants.·

Factuality Level: 3
Factuality Justification: The article provides information about the increase in credit card disputes and the process involved. However, it lacks depth and balance as it mainly focuses on the perspective of consumers and does not provide a comprehensive view of the issue. It also includes some anecdotal examples that may not be representative of the overall situation.·
Noise Level: 3
Noise Justification: The article provides detailed information on the surge in credit-card disputes, the process of disputing charges, and the consequences for both consumers and merchants. It includes real-life examples and quotes from individuals involved in disputes. However, the article lacks a deeper analysis of the implications of the increasing trend of credit-card disputes and does not explore potential solutions to mitigate misuse of the dispute process.·
Public Companies: Capital One (COF), Visa (V), Mastercard (MA), JPMorgan Chase (JPM), American Express (AXP), Salesforce (CRM), EBay (EBAY)
Key People: Paul Fabara (Visa’s chief risk officer), Sarah Grano (Spokeswoman for the American Bankers Association), Eran Agrios (Senior Vice President of Financial Services at Salesforce), Vivian Tu (Financial-literacy blogger), Christopher Elliott (Founder of Elliott.org), Johnathan Feldman (Tutor), Ryan Jones (Chief Risk and Compliance Officer at eBay), Lauren Nygard (Children’s bookseller)

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Financial Relevance: Yes
Financial Markets Impacted: Credit card companies, merchants, and consumers
Financial Rating Justification: The article discusses the surge in credit card disputes and its impact on credit card companies, merchants, and consumers. It highlights the increase in disputed charges and the financial consequences for merchants. It also mentions the updated policies of major card issuers and the costs associated with disputes. This information is relevant to financial markets and companies.·
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: null·

Reported publicly: www.wsj.com