Study: Arizona town leads U.S. in chargebacks

Tampa Bay, Fla. –- The community of Show Low, Arizona leads all U.S. cities in rates of chargebacks for credit card disputes, with a 2.2% chargeback rate. According to a new study from Chargebacks 911, a division of Global Risk Technologies, the top five cities (including multiple ties) are as follows:



1. 2.2% chargeback rate: Show Low, Arizona 85901

2. 1.7% chargeback rate: Port Washington, New York 11050

3. 1.5% chargeback rate (three-way tie): San Jose, California 95131; Astoria, New York 11105; and Miami 33145

4. 1.4% chargeback rate (two-way tie): Chicago 60646 and Sherman Oaks, California 91423

5. 1.3% chargeback rate (nine-way tie): Sarasota, Florida 34234; Los Angeles 90057; Woodland Hills, California 91364; Orlando, Florida 32836; Whittier, California 90603; Alhambra, California 91801; Plainview, New York 11803; North Hollywood, California 91602; and Houston, Texas 77067



The study’s chargeback statistics reflect the number of credit card disputes resulting in chargebacks as a percentage of total transactions, with the results tallied by cardholders’ billing ZIP codes. Researchers analyzed records of 500,000 chargebacks and relative transactions for e-commerce purchases made in 2013. Visa and Mastercard have set the approved threshold percentage for chargebacks at less than 1%.



Chargeback 911 found that the study demographics skewed heavily female (74%), the average transaction charge was $58 and more than 85% of all purchases were tangible goods shipped directly to the consumer. Some of the more commonly disputed charges included insurance, recurring health and beauty purchases, software, clothing, shoes, cosmetics, home goods and electronics. Many of the communities have lower-than-average median incomes and employment rates, which may reflect Chargeback 911’s findings that as much as 86% of chargebacks may be fraudulently filed by consumers.