Chargebacks do not always need to end in dispute
While eliminating or preventing chargebacks altogether would cause merchants to turn away good sales, some chargebacks could and should be prevented. While some friendly fraud is intentional, a survey found that 81% of consumers listed convenience as the actual reason for initiating chargebacks. In the same survey almost half of the customers polled did not even know chargebacks were being filed. Many assumed the bank was simply contacting the merchant on their behalf.
When merchants work directly with issuing banks to access critical chargeback dispute data, customers and merchants can settle chargebacks without the chargeback process. Since there is a limit on the ratio of chargebacks to transactions for any given merchant, merchants should try to resolve chargebacks in this manner.