Chargebacks911 CEO Monica Eaton was recently featured in IBS Intelligence, providing critical insights into the alarming rise of first-party misuse of chargebacks among UK consumers amid economic uncertainty.
IBS Intelligence is one of the world's leading FinTech news portals and media houses, providing timely information, opinions, and analysis on the global financial technology industry. Their IBSi FinTech Journal has been the most trusted FinTech publication since 1991, offering comprehensive coverage of banking technology, payments, and digital transformation.
In the piece, Monica highlighted how economic pressures are driving a concerning shift in consumer behavior. “We're seeing more cardholders exploit chargebacks not because they didn't receive the product or service, but because they're looking for ways to manage financial strain,” Eaton explained. “Unfortunately, it's the merchant who foots the bill.”
The article reveals a troubling trend where legitimate customers are increasingly disputing valid purchases—a practice known as friendly fraud. With UK household debt reaching a record £1.8 trillion and inflation climbing to 3.5%, consumers are weaponizing chargebacks as a financial coping mechanism, creating significant challenges for merchants already navigating Brexit-related trade barriers and rising import costs.
Monica further emphasized the evolving nature of this threat, stating: “Chargebacks are no longer just a cost of doing business—they're a symptom of deeper financial pressure and evolving fraud. But they're also a threat you can manage—if you have the right systems, tools, and mindset in place.”
