E-commerce buyers initiating more disputes


Since the start of the pandemic, consumers’ online purchases have exploded. In fact, 54% of all adult consumers are shopping more online now than they did before the pandemic, according to Tackling The Chargeback Surge, a collaboration between PYMNTS and Ethoca based on a survey of 3,557 consumers in Australia, UK and USA.

Get the report: Coping with the wave of chargebacks

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Along with the surge in global e-commerce shopping, there has been a greater frequency of consumer complaints about transactions. Thirty-nine percent of e-commerce shoppers surveyed say they dispute more e-commerce transactions now than before March 2020. In contrast, only 21% dispute fewer transactions.

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There are four main reasons consumers cite for filing disputes.

The most common reason is service errors, which can include a merchant sending a package to the wrong address or charging the wrong dollar amount for a transaction. Among consumers who disputed at least one charge in the last 12 months, 71% did so because of these types of errors.

The second most common reason consumers file disputes is customer confusion, meaning they were confused about some aspect of their transaction. 39% of consumers surveyed say they have initiated a dispute for this reason.

Two other top reasons cited by consumers for filing disputes are fraud, cited by 27% of respondents, and first-party abuse, cited by 10%.

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Many e-commerce merchants realize that disputes and chargebacks can drain their resources and hurt their bottom line if left unresolved. Knowing the lay of the land — and the nuances of the chargebacks detailed in this report — is the first step in a broader, long-term journey toward an effective chargeback prevention strategy.



On: Seventy percent of BNPL users say they would prefer to use the installment plans offered by their banks – if only they were made available. PYMNTS’ Banking On Buy Now, Pay Later: Installment Payments and the Untapped Opportunity of FIssurveyed over 2,200 US consumers to better understand how consumers view banks as BNPL providers in a sea of ​​BNPL pure-players.


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