Young shoppers are transforming the landscape of payment disputes, according to a new report from Chargebacks911, as mobile-first habits and expectations for instant service reshape how consumers resolve transaction issues.
The 2025 Cardholder Dispute Index, based on responses from more than 1,200 consumers in the US and UK, reveals a sharp generational divide in dispute behaviour. Shoppers aged 18 to 44 are increasingly bypassing merchants altogether and heading straight to their bank or card issuer to challenge transactions, often via mobile apps. According to the report, 83 percent of this age group now prefer to resolve disputes directly through their bank, while more than half initiate chargebacks without ever contacting the seller.
Monica Eaton, CEO of Chargebacks911, said the findings reflect a profound shift in customer expectations, particularly among younger consumers who have grown up in an on-demand digital world. “Younger shoppers are digital natives who want what they want, when they want it,” she said. “When it comes to disputing a transaction, they aren’t waiting on hold or looking for support emails. They’re tapping an app, filing a dispute with their bank, getting a refund, and moving on. And it works nearly every time.”
The rise of mobile wallets and flexible payment tools such as Buy Now, Pay Later services is reinforcing this behaviour. Consumers under 30 are more than twice as likely to prefer mobile wallets than those over 60, while nearly half of those aged 18 to 44 have used BNPL options, compared to just a third of older shoppers.
This evolving behaviour is presenting new challenges for retailers. Eaton warned that merchants who fail to offer fast, digital-first resolution options risk more than lost revenue. Increased chargeback volumes, declining customer trust, and long-term erosion of brand loyalty are now all on the table if businesses don’t adapt to modern dispute expectations.
The report argues that this trend is not simply about combating fraud or tightening security—it is about delivering a consumer experience that reflects the way people shop and engage today. Younger customers now expect fast, seamless service across all digital touchpoints, including when something goes wrong. When businesses fall short, the bank becomes the default route.
Eaton said that to remain competitive, merchants must transition from reactive dispute handling to proactive, frictionless customer support. That includes investing in clear billing, real-time refunds, transparent communication, and mobile-optimised support channels that are available around the clock.
“This isn’t just about better fraud protection—it’s about the modern customer journey,” she said. “If merchants continue to operate with legacy systems that rely on email support and manual resolution processes, they’re going to be left behind.”
With the rise of a generation that rewards efficiency and punishes friction, the stakes for merchants are clear. Businesses that modernise their dispute response and customer care systems stand to earn lasting loyalty. Those that don’t risk being cut out of the conversation entirely.
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Young consumers reshape payment dispute behaviour, putting pressure on retailers to modernise