Monica Eaton, CEO of Chargebacks911, was recently featured in a report by Sky News examining the growing problem of chargeback abuse in the United Kingdom. The article highlights how some consumers are exploiting refund mechanisms to obtain free meals, goods, and services—leaving merchants to absorb the financial losses.
The feature explores the rise of so-called “friendly fraud,” in which customers dispute legitimate transactions with their banks after receiving the product or service. While the chargeback process was originally designed to protect consumers from fraud or merchant misconduct, experts warn that misuse of the system is becoming increasingly common and is creating new challenges for small businesses and retailers.
“Bottom line: This problem has really become an epidemic,” Eaton told Sky News. “It’s really severe for all the small businesses and entrepreneurs.”
According to the report, chargebacks are expected to occur hundreds of millions of times globally this year, with a significant portion believed to involve fraudulent claims. Restaurant owners and retailers interviewed by Sky News described the growing financial toll of these disputes, noting that the costs are often passed along to honest customers through higher prices.
Eaton warned that the broader payments ecosystem must address the issue before it escalates further. Without better awareness and stronger safeguards, she said, abuse of consumer protection mechanisms could continue to grow and put increasing pressure on merchants and financial institutions alike.
