COVID-19 Is Leading to More Chargeback Issuances

Chargebacks911® COO Monica Eaton-Cardone’s New Guest Feature for

COVID-19 has been a tremendously disruptive force in the global market. As Chargebacks911 COO Monica Eaton-Cardone notes in a new guest feature for, a surge in chargeback issuances might be one of the most overlooked—yet most impactful—economic consequences. is one of the market’s leading consumer credit management services. A account offers customers a free credit report card with a personalized, easy-to-read dashboard that lets users see their score and what goes into it, allowing for more responsible and informed financial decisions.

As Monica notes, eCommerce is seeing dramatic gains due to COVID-19 shutdowns. While that’s good news for businesses reliant on that digital revenue, it also comes with a downside.

Friendly fraud [chargeback abuse] was already projected to cost businesses about $50 billion in 2020 before the outbreak began,” she says. “It’s too early to say how current trends will ultimately impact that figure. However, it’s possible that friendly fraud might result in more than $100 billion in losses this year alone.”

Monica insists that the key to addressing this growing threat is identifying chargeback by their source. You can’t rely on reason codes; instead, you need to drill deeper to determine the true source of each dispute. Then, you can prevent or fight back against chargebacks by their source.

“Once a merchant has largely eliminated the prospect of chargebacks caused by errors or criminal fraud, any remaining chargebacks should mostly be friendly fraud.”