Chargeback Trends Shift: Consumers Treat Disputes as Customer Service Requests

In a notable shift in consumer behavior, recent findings from Justt's Chargeback Benchmark Report reveal that customers are increasingly using credit card disputes not just as a method for reporting fraud, but as a way to voice complaints about service issues. This transformation indicates a growing trend where disputes over undelivered orders and unwanted subscriptions dominate, contrasting sharply with the traditional use of chargebacks exclusively for claimed fraud.

The report, titled The Fraud to Service Shuffle, examined millions of chargeback cases processed through Justt’s AI-driven platform between July 2024 and June 2026 across various industries. The analysis showcased a clear increase in disputes categorized as service-related, while fraud-related claims have reached a two-year low.

Key Findings:

1. Increase in Service Disputes: The proportion of chargebacks attributed to service issues — such as products not received and canceled subscriptions — surged from 13% to 24.1% over the past year. In tandem, fraud claims, which previously made up 74.6% of contested chargebacks, have now reduced to just 60.4%. This marks a pivotal change in the landscape of consumer purchasing behaviors, suggesting that customers are more inclined to turn to financial institutions when service expectations are not met.

2. Influence of Payment Partners: The success rates of merchants in resolving disputes varied significantly based on the payment processors involved. For chargebacks that were fraud-coded, win rates differed by over 30 percentage points between processors and by 35 points among major credit card issuers in the U.S. This indicates that merchants must navigate a complex relationship with payment processors to effectively dispute charges and manage consumer expectations.

3. Rising Dispute Volumes: The report noted that many merchants are facing increasingly larger volumes of contested chargebacks, with the median merchant experiencing a 13% increase annually. Alarmingly, one out of every four merchants reported a staggering 68% increase in disputed chargebacks.

4. Regional Insights: The UK and Ireland stand out as unique markets where service-related disputes currently surpassed fraud claims. This phenomenon aligns with the implementation of Strong Customer Authentication, which transfers fraud liability to card issuers, reflecting changing regulatory landscapes and consumer protection strategies in these regions.

A New Era in Payment Disputes

According to Ofir Tahor, CEO and co-founder of Justt, the introduction of service disputes marks the end of an era where chargeback strategies focused primarily on fraud. He emphasizes, "Cardholders are increasingly viewing disputes as an avenue for customer service. Why bother contacting a merchant over a late delivery when a simple call to the bank can secure a refund?" This drastic change signals that merchants who continue to adhere to outdated fraud strategies may find themselves at a competitive disadvantage.

As more consumers leverage disputes as a means of addressing service failures, it becomes imperative for merchants to adapt their strategies accordingly. Those who can effectively demonstrate fulfillment of their commitments to consumers will lead the charge in this evolving landscape.

Additionally, the full report's findings will be a focal point at the upcoming ChargebackX conference, scheduled for November 9-10, offering merchants further insights into navigating this new paradigm.

About Justt

Founded in 2020 and operating globally with offices in New York, London, and Tel Aviv, Justt.ai specializes in enterprise chargeback management through innovative AI-driven solutions. Trusted by over 250 global enterprise merchants, Justt helps businesses optimize revenue recovery and minimize manual efforts related to chargeback disputes. The company was recently recognized as a Forbes Fintech 50 entity in 2026, underscoring its position in the financial technology space. To learn more about Justt's offerings and insights, visit justt.ai.