As reported in a new feature published by Forbes, American consumers found a problematic new pastime during the pandemic: the credit card chargeback. And there's almost no industry where customers love filing credit card disputes more than travel.
Forbes is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. Forbes also reports on related subjects such as technology, communications, science, politics, and law.
According to the article, consumers can dispute a credit card charge for goods and services they did not receive or accept under the Fair Credit Billing Act. The bank will investigate, and if it sides with the consumer, that individual will get a refund.
When asked for her opinion on the matter, Monica warns that it has become more commonplace for consumers to actively dispute credit card payments then demand refunds from merchants. According to research by the company, the number of such disputes has risen by 25% since the start of the pandemic. Monica describes the figures as "jarring."
"It's a particularly ominous finding because merchants had hoped that the Covid-era explosion in chargebacks and payment disputes would begin to recede as our lives returned to normal," she says. "But clearly, it's a new normal out there."
On this note, Monica frequently warns consumers that chargebacks are not a “magic bullet.” Cardholders should be cautious about arbitrarily filing chargebacks, and only use the method as a last resort.