Do chargeback disputes have a negative impact on credit card issuers?
Absolutely. As consumer protection regulations become more onerous, the costs of compliance for issuing banks and other Financial Institutions (FI) become more significant. In addition to regulatory compliance costs, much of the financial industry processes chargeback disputes manually adding a great deal of inefficiency to the market.
The combined costs of regulatory compliance burdens and the chargeback processing costs themselves, represent a significant cost center for credit card issuers.