Ticketing ChargebacksHow Vendors May be Targeted by Scammers, Even After the Show is Over

Events Ticketing Chargebacks: Anticipating & Preventing Showbiz Disputes

Chargebacks, or forced payment reversals resulting from a customer dispute, are becoming an epidemic within the ticketing space. Part of the problem is the overall upward trend in chargeback issuances as a whole. There are key aspects of ticketing and events that make it particularly susceptible to disputes.

This rash of ticketing chargebacks is creating substantial challenges for the entire ticketing industry. So, how do event ticketing chargebacks happen? And perhaps more importantly, how can ticketing vendors protect themselves?

Ticketing Chargebacks: At a Glance

According to data from Mordor Intelligence, the online event ticketing market is expected to grow to $97.36 billion by 2028; a 25% increase compared to 2023. Professional fraudsters love ticketing, though. This is partly because a high percentage of sales are made online, which makes them largely anonymous.

Then there’s the growing price tag for popular events; for example, the average price of a single NFL seat is around $84. Tickets for popular events can usually be resold for a much higher amount, sometimes ten times or more than the face value, the data from Mordor Intelligence finds. In fact, smart scammers could “sell” the same tickets multiple times, collecting the funds from different buyers without ever delivering the product.

But ticket sellers must also deal with the growing threat of illegitimate chargebacks from buyers, too. Regular ticket holders who couldn’t attend the show, or who were somehow displeased with the event, may feel they deserve a refund. If they can’t obtain it from the ticket seller, they’re likely to dispute the purchase with their bank.

Why Do Event Ticketing Chargebacks Happen?

Of course, there are valid circumstances in which a cardholder might dispute a ticket purchase. For example, if the seats differed greatly from what the buyer was led to expect, a chargeback may be appropriate. Even then, cardholders have a responsibility to call the vendor and attempt to resolve the issue before they call their bank.

Other disputes can come from people who weren’t interested in the event at all. As we mentioned, criminal fraudsters use bots to score a large number of tickets to scalp.  Experts estimate that, when this happens, the bulk of these seats are purchased with stolen credit card information. When the legitimate cardholders learn of this, they promptly call their issuer to file a chargeback. In other words: the vendor loses the ticket, and still ends up having to refund the fraudulent sales.

Again, in many instances, these chargebacks are legitimate claims from honest customers. Sometimes, however, event attendees file disputes without valid cause. Examples of first-party fraud in the ticketing industry include:

• One party on a shared card account buys tickets without telling the other party, who doesn’t recognize the charge, assumes fraud, and calls the bank.
• A cardholder can’t attend an event, but already bought a non-refundable ticket. They attempt to bypass the vendor and obtain a refund from the bank by claiming the purchase was fraudulent.
• A game is called because of rain or other “act of God,” and the fan feels they were cheated out of an experience for which they’d paid.
• A fraudster buys a high number of seats, resells them at a huge profit, then files a chargeback against the original transaction.
• A concertgoer decides the event didn’t meet expectations, or is no longer a fan of the artist, and wants their money back.
• The cardholder is simply trying to get something for free.

None of these circumstances actually warrant a chargeback. The good news is that, as a ticket merchant, you may be able to challenge the customer’s claim through representment. But, even if you win, you will be assessed the chargeback fee and take a hit to your chargeback ratio regardless.

How Do Chargebacks Impact Ticketing?

If you’re a ticket vendor, ticketing chargebacks can deeply disrupt your daily operations. Each dispute translates to revenue loss and increased administrative expenses. This, in turn, results in increased costs and future complications.

Industry giants like Ticketmaster or the Shubert Organization take the heaviest hits, but these disputes hurt the industry as a whole. The more chargebacks that are filed, the more risky ticketing businesses appear. That means higher processing fees and stricter operating limitations. These will ultimately trickle down to the customer in the form of higher prices.

Chargebacks can directly lead to:

Learn more about chargeback costs

Overall, fraud and chargebacks have far-reaching impacts that can affect your reputation, customer relationships, operational efficiency, and compliance standing. This is reflected in some of the Reddit posts I’ve highlighted below:

Ticket Master Hack 2024
byu/Unlikely_Strategy_57 inMusic

Chargebacks can result in TM accounts being blocked and current and future purchases being revoked.
by inbonnaroo

Hackers are stealing tickets from Ticketmaster customers' accounts. For many, the platform is their only option.
byu/waozen intechnology

How Ticket Vendors Can Prevent Chargebacks: Our Top 15 Tips

Proactive prevention is the only way to get ahead of ticketing chargebacks. While general best practices like clear communication are a good start, they’re not sufficient for merchants who operate in high-risk verticals (like yourself).

That’s why you need to deploy a tailored set of strategies that can help you defeat the loopholes exploited by both fraudsters and frustrated customers. Here are fifteen best practices to consider:

#1 |  Use Dynamic and Detailed Billing Descriptors

Instead of a generic descriptor like “TICKET SALE,” use dynamic billing descriptors that include the artist or event name and the date. For example, “TAYLOR SWIFT 09-21-25.” This can dramatically reduce chargebacks from customers who file disputes because they forgot a purchase they made months ago.

#2 |  Educate Customers

Educating customers before they buy is essential. You should offer resources, such as user-friendly guides, online portals, and easy-to-contact customer support. Regular communication, including reminders, event updates, and instructions (such as parking availability) can also minimize confusion and prevent disputes.

#3 |  Clarify Billing Practices

Billing transparency and itemization can help customers recognize and validate charges, reducing the risk of billing disputes and chargebacks. Receipts (including ticket stubs) and credit card billing descriptors should clearly indicate the services provided and explain any associated costs, including adjustments or refunds.

#4 |  Clearly Disclose the Ticket’s Face Value

If you’re a reseller, your checkout page should explicitly show the original face value of the ticket alongside your listed price. This can prevent chargebacks from buyers who feel they were misled or overcharged.

#5 |  Send Multiple Confirmation Emails

A single confirmation email isn’t enough for a ticket purchased months in advance. To keep the event top-of-mind and build a clear communication trail, it’s better to send a series of emails that include:

• An immediate, detailed receipt at the time of purchase with pertinent details about the event.
• A reminder email one month before the event (bonus points if there’s a link to add the event to your Google Calendar or Apple Calendar app).
• A detailed email one week out with venue details, parking info, and entry requirements.
• A final email on the day of the event to combat last-minute confusion, in case the buyer missed your previous message.

#6 |  Require CVV Match & Address Verification

Requiring that the CVV and billing address both match the information on file with the issuing bank is a basic tactic that can deter fraudulent resellers who attempt to make bulk purchases using stolen credit card numbers.

#7 |  Automate Text & Push Notification Reminders

I already mentioned that you should send multiple email reminders. But, there are other avenues through which you can reach customers, too. Automated reminders sent via text message and push notifications from your mobile app can help keep events at the forefront of a customer’s mind.

#8 |  Simplify Documentation

Ticket holders may file chargebacks, claiming they didn’t understand the terms and conditions of the sale. You should ensure that all policy documentation is comprehensive, easily accessible, and written in customer-friendly language. This includes service limitations, exclusions, and refund conditions.

#9 |  Set Purchase Limits on High-Demand Events

To combat scalpers who use bots to bulk-buy tickets using stolen cards, impose a ticket limit per customer account, IP address, or credit card for high-demand events. This makes it much harder for a single fraudster or fraud ring to buy tickets in large quantities and reduces your exposure to large-scale chargeback attacks.

#10 |  Delay Barcode or QR Code Delivery

There’s no need to deliver the actual barcode, QR code, or printable ticket immediately upon purchase for most events. As long as you communicate things clearly, you may be able to delay delivery until 24-48 hours before the event. This shortens the window for fraudsters to resell fraudulent tickets on secondary markets and makes it easier to catch and cancel illegitimate purchases.

#11 |  Make Your Refund Policy Accessible

Your refund policy, especially for cancellations, postponements, or lineup changes, should be displayed prominently on the checkout page. Prior to checkout, require buyers to check a box that confirms they’ve read and agreed to your refund policy. Doing so provides you with evidence you can use in case the buyer later files a chargeback.

#12 |  Offer an Opt-In for Ticket Insurance

Partner with a third-party event ticket insurance provider and offer it as a clear, simple add-on during checkout. This gives customers with legitimate emergencies (like illness or travel delays) a valid path to recoup their funds instead of resorting to a chargeback.

#13 |  Use Geolocation and Device Fingerprinting

Use advanced fraud tools to check if the ticket buyer’s geolocation matches their billing address. You can also analyze the cardholder’s device fingerprint for indicators of fraud, such as repeated purchase attempts from a single device.

#14 |  Use Geolocation and Device Fingerprinting

Many chargebacks happen because customers find it too difficult to reach merchants directly. For the several days leading up to a major event, set up a dedicated support channel, like a live chat or a priority phone line, specifically for last-minute issues like ticket transfers or entry questions. This can help you resolve issues with customers before they boil over into chargebacks.

#15 |  Seek Feedback

Regularly seeking customer feedback through surveys, satisfaction ratings, or online reviews can provide valuable insights into which improvement may be necessary. Addressing customer concerns promptly can help prevent frustration from escalating into chargebacks and demonstrate a commitment to customer satisfaction.

Learn more about chargeback prevention

Event Ticketing Chargebacks Demand Specific Solutions

Your customers are after Taylor Swift tickets. You’re after Taylor, too — that is, a tailored, verticalized set of chargeback detection, prevention, and representment solutions that help you combat the ticketing disputes that plague your business.

Okay, I’ll admit I was really reaching for that pun. But, the point still stands.

The fully-customizable, end-to-end chargeback management solutions offered by Chargebacks911® can keep both friendly fraud and criminal fraud at bay, equipping you with the tools and confidence you need to run your business without fear of lost revenue or pesky chargeback fees.

Have questions for our experts? Get in touch with us for a complimentary, no-obligation ROI analysis today.