GITNUXREPORT 2025

Chargeback Statistics

Chargebacks cost merchants $31 billion in 2022, driven by fraud.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

Our Commitment to Accuracy

Rigorous fact-checking • Reputable sources • Regular updatesLearn more

Statistic 1

The global chargeback amount reached $31 billion in 2022

Statistic 2

The average chargeback amount is around $450

Statistic 3

Merchants lose about $4.36 for every dollar of fraudulent chargebacks

Statistic 4

In 2023, the chargeback rate in e-commerce was approximately 0.74%

Statistic 5

The average transaction value associated with chargebacks is around $120, but high-value transactions are more targeted

Statistic 6

The average cost for a merchant to handle a chargeback dispute is approximately $100, considering fees and resource allocation

Statistic 7

Approximately 60% of chargebacks are successfully recovered through chargeback representment

Statistic 8

In 2022, the cumulative fraud and chargeback costs for online merchants increased by 18%, reaching new heights in financial loss

Statistic 9

The average response time for merchants to address a chargeback is approximately 12 days, which can significantly impact dispute outcomes

Statistic 10

Approximately 65% of merchants experience chargebacks annually

Statistic 11

Card-not-present fraud accounts for over 80% of all chargeback fraud cases

Statistic 12

More than 45% of chargebacks are due to fraudulent transactions

Statistic 13

About 50% of chargebacks are initiated within the first 60 days of a transaction

Statistic 14

Digital goods and software services experience nearly 70% of chargebacks due to customer disputes

Statistic 15

Small businesses face a higher chargeback ratio, often exceeding 1%, compared to larger enterprises

Statistic 16

Debit card chargebacks constitute roughly 35% of total chargebacks

Statistic 17

The most common reason for a chargeback isUnauthorized or fraudulent transactions, accounting for nearly 60% of cases

Statistic 18

The rate of friendly fraud chargebacks increased by over 20% from 2021 to 2023

Statistic 19

Nearly 60% of merchants do not dispute chargebacks due to resource constraints

Statistic 20

Approximately 42% of consumers admit to abuse of the chargeback process, known as friendly fraud

Statistic 21

Card present transactions have a lower chargeback rate (~0.22%) compared to card-not-present transactions (~0.75%)

Statistic 22

The retail industry experiences the highest chargeback rates, accounting for over 50% of all chargebacks

Statistic 23

Business sectors with subscription services have a chargeback rate nearly double that of one-time purchases

Statistic 24

Chargebacks caused by processing errors account for about 10% of cases, highlighting the importance of accurate transaction data

Statistic 25

The rate of chargeback fraud in mobile payments increased by over 15% in 2023

Statistic 26

78% of merchants believe their chargeback management processes need improvement

Statistic 27

Europe has seen a 12% increase in chargebacks over the last year, reflecting growing e-commerce activity

Statistic 28

The chargeback rate for high-risk industries, such as travel and health, can reach up to 2%, significantly higher than average

Statistic 29

Effective chargeback prevention strategies can reduce fraud-related chargebacks by up to 50%

Statistic 30

Customer disputes make up about 25% of chargebacks and are often due to dissatisfaction with product or service

Statistic 31

The majority of chargebacks (over 70%) are initiated within the first 90 days after the transaction, emphasizing the importance of prompt dispute resolution

Statistic 32

Merchants who respond early to chargebacks have a 45% higher chance of winning disputes

Statistic 33

Implementing EMV chip technology has helped reduce card-present fraud-related chargebacks by approximately 25% since 2015

Statistic 34

The tiered approach to chargeback management categorizes disputes into different risk levels, helping merchants prioritize resources effectively

Statistic 35

Merchant education programs can cut chargeback rates by up to 15%, demonstrating the value of training and awareness

Statistic 36

The use of AI and machine learning in fraud detection has decreased chargebacks by approximately 30% in 2023

Statistic 37

The most common industries impacted by chargebacks are retail, travel, and digital services, collectively accounting for over 65% of cases

Statistic 38

Chargebacks can damage merchant reputation, leading to higher future processing costs and stricter processing requirements

Statistic 39

Consumer knowledge about chargeback rights has increased, with 55% aware of their rights compared to 40% in 2020

Slide 1 of 39

Sources

Our Reports have been cited by:

Trust Badges - Publications that have cited our reports

Key Highlights

The global chargeback amount reached $31 billion in 2022
Approximately 65% of merchants experience chargebacks annually
Card-not-present fraud accounts for over 80% of all chargeback fraud cases
The average chargeback amount is around $450
Merchants lose about $4.36 for every dollar of fraudulent chargebacks
In 2023, the chargeback rate in e-commerce was approximately 0.74%
More than 45% of chargebacks are due to fraudulent transactions
About 50% of chargebacks are initiated within the first 60 days of a transaction
Digital goods and software services experience nearly 70% of chargebacks due to customer disputes
Small businesses face a higher chargeback ratio, often exceeding 1%, compared to larger enterprises
Debit card chargebacks constitute roughly 35% of total chargebacks
The average transaction value associated with chargebacks is around $120, but high-value transactions are more targeted
The most common reason for a chargeback isUnauthorized or fraudulent transactions, accounting for nearly 60% of cases

With global chargeback losses soaring to a staggering $31 billion in 2022 and nearly half of all chargebacks stemming from fraud and customer disputes, understanding the key trends and effective strategies to combat this costly challenge has never been more crucial for merchants navigating today’s digital economy.

Financial and Cost Metrics

The global chargeback amount reached $31 billion in 2022
The average chargeback amount is around $450
Merchants lose about $4.36 for every dollar of fraudulent chargebacks
In 2023, the chargeback rate in e-commerce was approximately 0.74%
The average transaction value associated with chargebacks is around $120, but high-value transactions are more targeted
The average cost for a merchant to handle a chargeback dispute is approximately $100, considering fees and resource allocation
Approximately 60% of chargebacks are successfully recovered through chargeback representment
In 2022, the cumulative fraud and chargeback costs for online merchants increased by 18%, reaching new heights in financial loss
The average response time for merchants to address a chargeback is approximately 12 days, which can significantly impact dispute outcomes

Financial and Cost Metrics Interpretation

With $31 billion at stake in 2022 alone, merchants are caught in a costly game of whack-a-mole where every $450 dispute could cost them $4.36 in losses, and while nearly 60% are recoverable, the nearly two-week response time and rising fraud costs threaten to turn commerce into a high-stakes gamble.

Fraud and Chargeback Causes

Approximately 65% of merchants experience chargebacks annually
Card-not-present fraud accounts for over 80% of all chargeback fraud cases
More than 45% of chargebacks are due to fraudulent transactions
About 50% of chargebacks are initiated within the first 60 days of a transaction
Digital goods and software services experience nearly 70% of chargebacks due to customer disputes
Small businesses face a higher chargeback ratio, often exceeding 1%, compared to larger enterprises
Debit card chargebacks constitute roughly 35% of total chargebacks
The most common reason for a chargeback isUnauthorized or fraudulent transactions, accounting for nearly 60% of cases
The rate of friendly fraud chargebacks increased by over 20% from 2021 to 2023
Nearly 60% of merchants do not dispute chargebacks due to resource constraints
Approximately 42% of consumers admit to abuse of the chargeback process, known as friendly fraud
Card present transactions have a lower chargeback rate (~0.22%) compared to card-not-present transactions (~0.75%)
The retail industry experiences the highest chargeback rates, accounting for over 50% of all chargebacks
Business sectors with subscription services have a chargeback rate nearly double that of one-time purchases
Chargebacks caused by processing errors account for about 10% of cases, highlighting the importance of accurate transaction data
The rate of chargeback fraud in mobile payments increased by over 15% in 2023
78% of merchants believe their chargeback management processes need improvement
Europe has seen a 12% increase in chargebacks over the last year, reflecting growing e-commerce activity
The chargeback rate for high-risk industries, such as travel and health, can reach up to 2%, significantly higher than average
Effective chargeback prevention strategies can reduce fraud-related chargebacks by up to 50%
Customer disputes make up about 25% of chargebacks and are often due to dissatisfaction with product or service
The majority of chargebacks (over 70%) are initiated within the first 90 days after the transaction, emphasizing the importance of prompt dispute resolution
Merchants who respond early to chargebacks have a 45% higher chance of winning disputes
Implementing EMV chip technology has helped reduce card-present fraud-related chargebacks by approximately 25% since 2015
The tiered approach to chargeback management categorizes disputes into different risk levels, helping merchants prioritize resources effectively
Merchant education programs can cut chargeback rates by up to 15%, demonstrating the value of training and awareness

Fraud and Chargeback Causes Interpretation

With over 65% of merchants battling chargebacks annually—primarily driven by fraudulent, often first-month, digital transactions—a proactive, educated approach remains the best defense against the rising tide of friendly fraud, processing errors, and high-risk sector vulnerabilities, especially as resource constraints hinder more than two-fifths of merchants from effectively contesting disputes.

Market Trends and Industry Impact

The use of AI and machine learning in fraud detection has decreased chargebacks by approximately 30% in 2023
The most common industries impacted by chargebacks are retail, travel, and digital services, collectively accounting for over 65% of cases
Chargebacks can damage merchant reputation, leading to higher future processing costs and stricter processing requirements
Consumer knowledge about chargeback rights has increased, with 55% aware of their rights compared to 40% in 2020

Market Trends and Industry Impact Interpretation

As AI and machine learning tighten the net on fraud, the rising consumer awareness and the heavy-hit industries like retail, travel, and digital services underscore that in the battle against chargebacks, both technology and education are now crucial allies—warning signs for merchants who ignore either.