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  • Writer's pictureDevon Harris

Diverse Payments Options & How They're Changing Chargebacks

As technology advances, industries have undergone significant changes in recent years to accommodate a range of online and in-store purchases. These changes include the proliferation of contactless payments and the introduction of various buy-now-pay-later options. While these innovations can benefit businesses, they also present a challenge in terms of maintaining a positive customer experience. It is essential for businesses to stay informed about the latest developments in fintech and understand how they impact both merchants and customers in order to remain competitive.

Digital Transactions

Digital services, such as banking apps, have increasingly become the primary, or even sole, point of interaction for many customers, rather than being an additional option to in-person banking. This shift offers merchants the chance to directly engage with customers through the apps they use while reducing transaction confusion. For example, providing digital receipts within the app can provide customers with more detailed information about their transactions and enhance a merchant's brand presence. It is important for merchants to consider the overall customer experience, including the post-transaction experience when cardholders review their purchase history online.


In recent years, digital-first challenger banks have gained widespread acceptance. To remain competitive, traditional banks have expanded their own digital offerings and made their banking apps the focus of the customer experience. It is now uncommon for banking customers to need to visit a bank branch or call a customer service line.

QR Code Payments

QR codes have gained widespread popularity in recent years, particularly in industries such as hospitality and dining, as they allow for easy, contactless service. According to a recent poll, 51% of consumers said they plan to use QR code payments, and research predicts that QR codes will become the most commonly used digital commerce mechanism in terms of volume in the next two years.


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There are several reasons for the popularity of QR code payments. They enable retailers to accept digital payments while also offering a blend of physical and digital experiences. For example, QR codes can be used to allow customers at a restaurant to pay their tab without needing to interact with a staff member. However, businesses can also use them to create more comprehensive digital checkout experiences that incorporate loyalty and reward programs or additional discounts.


Regardless of how they are used, QR code payments are often card-not-present (CNP) transactions in which customers do not present physical cards to staff. It is important for merchants to consider both the customer experience and fraud and chargeback prevention strategies when implementing QR payments.

Voice-Activated Purchases

Smart speaker devices, such as Amazon Echo and Google Home, are becoming increasingly popular for shopping and are expected to become even more prevalent in the coming years. One report predicts that 75% of US households will own one by 2025.


Although voice recognition interactions are currently limited to simple commands, the technology behind them is constantly improving. As voice-activated shopping becomes more popular, companies will need to create "skills" for these platforms. However, current voice recognition technology can sometimes allow other household members, such as children, to make purchases without obtaining permission, which may lead to an increase in chargeback requests.

What are the implications?

The rapid pace of digital transformation means that merchants must be proactive in adopting technologies that enhance the customer experience and keep up with evolving expectations. Each new technology brings changes to both the customer experience and the fraud strategy for businesses. Therefore, when implementing new models, merchants must understand the potential impacts on their operations and choose tools that will adapt and scale to maintain a seamless experience and minimize fraud and chargebacks.

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