Consumers Using Credit Chargebacks to Protest Company Values: Report

Credit card chargebacks are at “crisis levels” for retailers in the U.S. and U.K., reported chargeback mitigation company Justt Wednesday. Two-thirds of U.S. consumers, and 44% of British shoppers, have filed chargebacks in the past 12 months, and many have filed multiple ones, Justt said. Surveys showed 44% of U.S. users have either filed a chargeback or considered doing so because they disagreed with a company’s values, the report said. Sixty-two percent of U.S. users requested a refund or a chargeback on a buy now, pay later purchase in the past 12 months; 49% filed a chargeback on online or mobile games; and a quarter of crypto buyers filed a chargeback, it said. “If left unaddressed, chargebacks present a significant threat to merchant revenues and the overall health of the eCommerce ecosystem,” said the company. “Chargebacks offer consumers protection from fraud, but in reality, the majority of customers repudiate a charge because of shipping issues, delivery problems, and merchant errors," it said.