AI Can Resolve Chargeback Challenges for Merchants, Banks

  • “Many card disputes are filed without a valid reason. This is a practice called “friendly fraud,” and chargebacks tied specifically to that practice have continued to grow at a rate of approximately 20% each year. They’re growing so quickly, in fact, that friendly fraud is projected to represent nearly two-thirds of all chargeback issuances by 2023.
  • A cloud-based AI approach could eliminate redundancies in the chargeback process. Much of the back-and-forth decisioning and reconciliation process could be cut. This would mean legitimate disputes are resolved in hours, rather than weeks, while friendly fraud chargebacks gradually disappear.
  • Financial institutions could reallocate many of the 39,000 fulltime equivalent employees currently occupied with chargeback-related activities, allowing for greater efficiency in other departments.”

AI Can Resolve Chargeback Challenges for Merchants, Banks

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