Financial losses: Chargebacks result in direct financial losses, as you are forced to refund the purchase amount despite, in many cases, delivering the customer a product or service.

Loss of customer trust: Allowing an avoidable chargeback to progress to the chargeback stage when it could have been prevented or resolved directly can leave customers feeling unsatisfied and distrusting of your business.

Administrative burden: High chargeback rates increase the amount of time and effort your financial team spends on dispute resolution when they could be focused on generating revenue for the business.