Subscriptions dominate daily spending, from music to media, news or makeup. They’re also at the centre of a growing chargeback storm. According to Chargebacks911, a global leader in dispute resolution and chargeback prevention, its 2025 Cardholder Dispute Index shows consumers spend an average of $2600 (€2500) a year on subscriptions – and nearly half admit they’re paying for services they forgot they even had.
The report also found that 8 in 10 consumers signed up for a free trial in the past year and 85% say they’d prefer their bank to cancel subscriptions on their behalf.
This is a consumer sentiment that regulators are taking note of. In the US, The Federal Trade Commission (FTC) proposed a Click-to-Cancel rule to make cancellation as easy as sign-up. While currently on hold due to procedural issues, industry experts expect it to move forward. At the same time, the FTC is cracking down on some businesses for egregious cancellation policies, including a 14 million dollar settlement with Match Group over deceptive billing and cancellation practices.
“Let’s be honest. If cancelling a subscription isn’t just as easy to end as it was to sign up, people won’t even try. They’ll just hit ‘dispute’ in their banking app,” said Ben Bridwell, President at Chargebacks911. “That choice might be convenient for the customer, but it hits merchants with unnecessary chargebacks and fees that are far more painful than cancelling a subscription or issuing a refund.”
The report highlights how fast this behaviour is spreading. Almost half of cardholders skip the merchant entirely and go straight to their bank when there is a post-transaction issue. Nearly 85% of cardholders want banks to be able to cancel subscriptions on their behalf, while 90% of respondents said successfully disputing a transaction would make them more likely to try it again.
For subscription merchants, Bridwell stresses that the lesson is straightforward: transparency and accessibility are key.
“Merchants should clearly outline subscription terms and make billing schedules and renewal dates easy to understand. When customers know exactly what to expect, they’re far less likely to feel misled or frustrated,” says Bridwell. “That clarity builds trust and long-term loyalty, rather than short-term revenue that risks being undone by disputes. Just as important, businesses should ensure that cancellation is simple and straightforward. A frictionless cancellation process not only demonstrates respect for the customer but also creates an opportunity to gather valuable feedback on why subscribers are leaving. Armed with that insight, merchants can tailor retention strategies—such as offering alternative plans, discounts, or temporary pauses—that may ultimately keep the customer engaged.”
Bridwell adds that making cancellations easy doesn’t just improve the customer experience—it also protects the business. When customers are able to cancel directly with the merchant, they’re less likely to bypass that process and go straight to their bank.
That shift is critical, because bank-initiated disputes trigger chargeback fees, network penalties, and potential reputational harm. By reducing these unnecessary escalations, merchants not only save money but also safeguard their standing with both payment partners and customers.
The 2025 Cardholder Dispute Index is the latest in Chargebacks911’s ongoing research into consumer and merchant dispute behaviours, providing actionable insights to help businesses reduce risk, improve customer experience, and adapt to evolving payment trends.
To access the full 2025 Cardholder Dispute Index, visit https://chargebacks911.com/cardholder-dispute-index.
