Woman issues PPE to customers disputing ticket purchases

One of the benefits of using a credit card for purchases is that shoppers can dispute fraudulent charges.

While cash purchases may be more difficult to combat, customers have the ability to dispute them when a customer uses a credit card to purchase an item and does not actually receive it, or when someone steals a user’s credit card and fraudulently charges their credit card provider .

However, this power also opens up the possibility for fraud. Customers can purchase an item or service with a credit card and then dispute it with their credit card in hopes of getting a refund.

However, the process is not that easy for both parties. Every dispute leads to an investigation that can cost both parties significant time and money to prove the legitimacy of their claim.

Because of this, some companies limit the use of credit cards or warn customers about the dangers of fraudulent disputes over transactions.

Now, one user’s TikTok has gone viral, accumulating over 400,000 views after sharing her thoughts on the topic.

“Can you please stop contesting charges you know you have made?” TikTok user Morgan (@morgansandiego) asks in the video.

@morgansandiego These arguments are getting out of control!! PLEASE STOP GETTING SERVICES YOU CANNOT AFFORD. I saw a video yesterday of a lash technician failing to pay RENT due to $800 chargebacks!!!! If you can’t afford eyelashes, nails, waxes, that’s fine… DIY and off to YouTube! Stealing is NOT ok! #lashtechproblems #nailtechproblems #stilletonails #lashextensions #lashtechnician #estheticianlife #estheticiantiktok ♬ Original sound – Morgan NP

Later in the video, she notes the consequences of this practice. “The girls like me who never have cash on them have to pay our bills in cash,” she says. “And because of you, Joanne, the imposter, whole policies had to be changed!”

How widespread dispute fraud is actually widespread is unclear. According to MiDiGator, owned by Equifax, the actual percentage of transactions resulting in chargebacks (legitimate or fraudulent) has steadily decreased from 2017 to 2020.

The same report states that the industry average win rate for merchants facing chargebacks is around 40%. This means that around 60% of the time the customer is genuinely entitled to their chargeback.

Another site that focuses on chargebacks estimates merchants’ net win rate much lower, saying they win only 9% of the time. Actual data on how this rate has changed over time is hard to come by beyond mere anecdotes.

Back on TikTok, users shared some of these anecdotes.

“I work in disputes and today someone literally disputed a whopping 13,000 BBL,” claimed one user.

“When I was working at a bank, people called a tip because they changed their minds… it’s ridiculous,” claimed a second.

“Yeah! I work in the disputes department and you’d be shocked at what people are arguing… I’m like, ‘Wait ma’am… So you got the service, why are you arguing?'” said a third.

The Daily Dot contacted Morgan through the website’s contact form.

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