A recent chargeback survey was carried out in the USA to examine the experience of buyers that had raised one or more chargebacks. There were a number of interesting findings.
Although just over 50% of respondents initiated the chargeback by calling the bank, just over 40% of respondents used their banking app and only 33% of respondents reported being challenged by their bank when raising the chargeback.
The top two reasons for raising the chargeback were an unrecognised transaction or being double charged. Third, that the allowed time limit had lapsed (presumably a return window); fourth, the return process was confusing or too much work; fifth, the item didn’t match the description; sixth, the item was defective. The order arriving late, and a change of mind were among the final reasons.
53% of the respondents have disputed a charge without contacting the merchant, and 72% thought that raising a chargeback was a valid alternative to requesting a refund from the merchant. Among the reasons for this were that the bank offers a faster resolution (1), the bank is more understanding than a retailer (2) and that the bank requires less information than a retailer (4).
More than 80% of respondents reported being very satisfied or satisfied with their chargeback experience, and 87% said that they were more likely to dispute another charge after their initial successful experience.
When asked what warranted a chargeback, 65% agreed with the statement that late delivery was a legitimate reason. Nearly 50% thought a family charge (e.g. child using parent’s card) was legitimate and just over 40% thought a purchase regret was valid.
This was a self-selecting survey conducted in the USA, so may not be indicative of the UK consumer market. However, I found it to be concerning in that it appeared to indicate that chargebacks are a quick, simple, hassle free, and perfectly legitimate way of getting a refund.
