Improving the Dispute Experience: Transparency Is Power

Providing consumers with clearer transaction details has the potential to reduce call volume by about 25%, according to a new Aite Group report.

Boston, May 26, 2020 — The ability for cardholders to dispute a transaction is a fundamental underpinning of the payment card value proposition and a key reason why consumers around the globe embrace card payments. The operational reality of enabling disputes and chargebacks, however, has a lot of room for improvement, in terms of both the customer experience and operational efficiency for merchants and issuers. Aite Group’s latest report, Improving the Dispute Experience: Transparency Is Power, explores how players in the payments ecosystem are addressing the challenges associated with dispute and chargeback management, and how those efforts will evolve over the next couple of years.

“Issuers’ cost for contact center dispute intake will be more than US$136 million in 2020, growing to US$177.6 million by 2023,” states Trace Fooshee, senior analyst at Aite Group. “The deployment of enhanced transactional detail could reduce this by 25%, based on the data that indicates that one in four inbound dispute calls is the result of confusion over statement descriptors,” he explains.

This report examines the consumer dispute experience as well as the developments in the payments ecosystem that are intended to ameliorate the dispute-resolution process. In this research effort, sponsored by Ethoca, Aite Group surveyed 1,004 U.S. consumers in January 2020 to understand the degree of frustration that dispute resolution currently causes relative to other card experiences. Aite Group also interviewed 10 large North American credit and debit card issuers as well as a number of large e-commerce merchants from November 2019 to February 2020 to better understand the industry’s challenges and form the basis for this report.

To request a press copy of this report or to speak with Trace Fooshee or Julie Conroy about this topic, please contact us at [email protected].

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

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