As we approach the end of 2020, it’s time to start thinking about what changes and new features will be coming to credit cards in 2022. One of the biggest changes that has been talked about is the implementation of chargeback limits. This would mean that cardholders would only be able to dispute a certain number of charges per year, with any additional disputes being automatically rejected.
There are a few different ways that this could work. The first is to have a set limit for all cardholders, regardless of their spending habits or account history. This would be similar to how some banks currently have limits on the number of overdraft fees that can be charged per month. Another option would be to tie the chargeback limit to the credit limit of the card. So, if a cardholder has a $5,000 credit limit, they would only be able to dispute $500 worth of charges per year.
There are pros and cons to both of these approaches. The biggest advantage of having a set limit is that it would be easy to implement and enforce. Cardholders would know exactly how many disputes they had available, and if they ran out, they would simply have to accept the charge. The downside is that it could be unfair to those who rarely use their card or who are very careful about their spending. On the other hand, tying the chargeback limit to the credit limit could be more flexible, but it would also be more complicated to implement and enforce.
At the end of the day, Chargeback Limits in 2022 up to each individual card issuer to decide whether or not to implement a chargeback limit. Some may choose to do so in order to reduce fraud and disputes, while others may feel that Chargeback Limits in 2022 would be unfair to cardholders. Whatever the case, it’s something that we’ll be keeping an eye on in the coming year