The news: Comprehensive checkout information within mobile banking apps could reduce chargeback dispute frequency, per a Datos Insights report commissioned by Mastercard.

Sixty-four percent of consumers report that they are less likely to dispute charges if supplied with more transaction information within their banking apps.

How we got here: Chargeback disputes carry heavy risks for retailers and are time and resource-intensive for payment providers to investigate. Last year, cardholders disputed over $34 billion in debit and credit card transactions, per a joint Javelin and Mastercard report. 

Chargebacks have severe repercussions for merchants: They can get kicked off card networks if their chargeback ratios exceed 1.5%, per PayPal Braintree. Meanwhile, dispute cases take anywhere from 75 to 120 days to complete depending on the participating processor, per Chargeback.io. 

Why this matters: Banks and networks can satisfy customers and merchants by investing in their mobile banking apps and enabling item-level transaction data. 

More visibility in-app helps consumers gain greater awareness of their own charges and nip possible disputes in the bud. 

Zooming out: Other app enhancements can also benefit FIs. Nearly one-third (32%) of respondents to our mobile banking benchmark survey said that the ability to view, pause, and stop recurring charges is “highly valuable” to them—and zero top 10 financial institutions offer this service as of last year.

Issuers are missing out on a huge opportunity to snag consistent new volume: 79% of consumers stated that easy cancellations on recurring charges make them more likely to enroll in new subscriptions, per Datos Insights. 

Implications for financial providers: Banks have an opportunity to reposition their mobile apps from passive transaction trackers into proactive commerce management hubs. 

As consumers expect greater transparency and control over their purchases—and become a little too comfortable using disputes as a first option—FIs that embed richer merchant data, subscription controls, and real-time transaction context can deepen engagement.

The opportunity is strongest with younger consumers. Gen Z reports the highest levels of transaction confusion, and 79% are willing to adopt in-app payment controls. Institutions that improve transaction clarity and self-service capabilities could strengthen loyalty with digitally native customers before fintechs and alternative financial apps fill the gap.

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