Chargebacks Are Costing Businesses Billions in 2025

Chargebacks are on the rise, with global chargeback volumes expected to increase by 24% between 2025 and 2028, reaching a staggering 324 million transactions annually. For merchants and financial institutions, the true cost of a chargeback goes far beyond the disputed amount. It includes chargeback fees, lost merchandise, operational costs, and even the risk of higher payment processing fees if chargeback rates exceed industry thresholds.

Key Chargeback Statistics for 2025

• Average chargeback rate across industries: 0.60%
• Average chargeback value: $110 (U.S.), $120 (travel/hospitality)
• Average cost per dispute for financial institutions: $9.08–$10.32
• Annual global chargeback costs: Projected to reach $41.69 billion by 2028

Why Are Chargebacks Increasing?

Several trends are driving the surge in chargebacks and payment fraud:

• Growth in digital transactions: More online purchases mean more opportunities for disputes.
• Subscription economy: Recurring payments often lead to confusion and accidental chargebacks.
• Fraudulent chargebacks: First-party and third-party fraud now account for nearly 45% of merchant chargeback volume.
• Customer confusion: Many shoppers don’t recognize transactions or don’t contact merchants before disputing charges.

How Interac Reduces Chargeback Risk for Merchants

If you’re searching for the best way to prevent chargebacks in 2025, look no further than Paramount Commerce. Paramount Commerce’s Interac® product boasts a chargeback rate of just 0.002%—dramatically lower than the industry average and even lower than U.S. P2P payment networks such as Zelle (0.05%).

Why is Interac so effective?

Interac e-Transfer operates on a “good funds” model—funds are transferred instantly and can’t be reversed. This means no chargebacks, no surprise fees, and no risk of processor fines for high dispute rates.

Benefits of Using Interac for Your Business

• Eliminate chargeback fees: No more paying $10–$50 per dispute.
• Reduce operational costs: Less time and money spent on dispute management.
• Protect your cash flow: Real-time settlement means no waiting for funds.
• Lower fraud risk: Built-in security and authentication.
• Boost customer trust: Fewer disputes mean a better experience.

Action Steps: How to Prevent Chargebacks in 2025

• Add Interac as a payment method: Especially for high-growth industries such as iGaming, remittance, eCommerce, and subscriptions.
• Improve transaction transparency: Use clear billing descriptors and digital receipts.
• Streamline subscription management: Allow customers to easily pause or cancel subscriptions.
• Educate your customers: Proactively communicate about payment processes to reduce confusion.

Interac Is the #1 Chargeback Prevention Solution in 2025

With chargeback volumes and costs rising worldwide, choosing the right payment solution is critical. Interac stands out as the best way to prevent chargebacks, minimize fraud, and protect your bottom line. Paramount Commerce’s Interac product delivers industry-leading security, real-time settlement, and a chargeback rate that’s virtually zero.

Ready to future-proof your business against chargebacks? Talk to us today.