Chargebacks911 research: new wave of young, tech savvy consumers reshape payment dispute behaviour

Younger consumers are fundamentally transforming how payment disputes unfold, and merchants who don’t adapt risk more than just lost revenue.

That’s according to Chargebacks911 research based on responses from over 1,200 cardholders in the US and UK.

“Younger shoppers are digital natives who want what they want, when they want it. When it comes to disputing a transaction with a merchant, they aren’t waiting on hold, searching for support emails, or even looking to speak to an actual person,” says Monica Eaton, CEO at Chargebacks911.

“More often than not, they’ll tap an app, file a dispute with their bank, get an instant refund and move on. They do this because it’s convenient and it works nearly every time. If merchants aren’t meeting them with digital first solutions, they’re already behind.”

Key findings:

• Mobile wallet preference skews young: Consumers under 30 are more than twice as likely to prefer mobile wallets than those over 60.

• Buy now, pay later adoption is rising: Nearly half of shoppers aged 18–44 have used BNPL services, compared to just 33% of those over 60.

• Bank first mentality: 83% of 18–44-year-olds prefer resolving disputes through their bank, not the merchant. Just one-third of consumers over 60 disputed a transaction without contacting the merchant in the past year.

• Dispute short-cuts are normalised: Over half of younger consumers skip contacting the seller altogether and initiate disputes directly through mobile banking platforms.

Shoppers today demand fast, seamless, app driven service, and they reward brands that deliver with loyalty or punish those that don’t with disputes and defection. Chargebacks911 warns that failing to meet digital first standards puts merchants at risk of: Increased chargeback volume and revenue loss; Damaged brand trust among high-value demographics; Long-term loyalty erosion from a generation that expects more.

“This isn’t just about better fraud protection - it’s about adapting to the modern customer experience,” Eaton adds. “Brands must shift from reactive dispute management to proactive, frictionless support if they want to survive this generational shift.”

Eaton says to stay competitive, merchants must invest in digital dispute prevention, including transparent billing, accurate billing descriptors, streamlined refund flows, and always-available customer support, before the bank becomes the first point of contact.

2025 RTIH INNOVATION AWARDS

Payments will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.