How Cardholder Misconduct is Driving Up Costs for Consumers & Leading to Poorer Customer ExperienceMonica Eaton Warns Cardholder Misconduct is on the Rise in New Piece for Entrepreneur

November 4, 2024 | 1 min read

How Cardholder Misconduct is Driving Up Costs for Consumers & Leading to Poorer Customer Experience

New data from Chargebacks911® suggests that cardholder misconduct is on the rise, sending worrying signals for merchants and consumers, as Founder and CEO Monica Eaton outlines in a new feature for Entrepreneur.

Entrepreneur is an American magazine and website that carries news stories about entrepreneurship, small business management, and business. The magazine was first published in 1977. It is published by Entrepreneur Media Inc., headquartered in Irvine, California.

Merchants bear the brunt of the cost of chargebacks... at least initially. But, as Monica explains, cardholders end up paying a price, too. “When merchants see higher payment processing costs due to increasing cardholder misconduct, product prices could rise,” she explains.

“Merchants are forced to pass the costs of chargebacks onto consumers. Specifically, 32.5% of merchants surveyed in the Chargeback Field Report admitted raising their prices in response to cardholder disputes. In effect, all shoppers end up paying higher prices because some cardholders abuse the chargeback system.”

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