Minimizing Chargebacks with Digital Receipts: A Smarter Way to Protect Your Business

Chargebacks are a growing concern for small and medium-sized brick-and-mortar merchants. Whether due to friendly fraud, misunderstandings, or legitimate disputes, chargebacks can eat into profits, increase processing fees, and even threaten relationships with payment providers.

At ReceiptHero, we believe there’s a smarter way for in-store businesses to reduce chargebacks—by embracing digital receipts.

The Rising Cost of Chargebacks

Chargebacks are expected to cost merchants over $117 billion globally by 2025 (Juniper Research). Many disputes stem from a lack of clear documentation. Paper receipts are often lost, faded, or unreadable—especially in high-traffic retail environments. Without adequate proof of purchase, merchants are left vulnerable to disputes they can’t contest.

According to Chargebacks911, the average chargeback-to-transaction ratio for merchants is around 0.60%. Visa and Mastercard have set thresholds around 0.90%, and merchants exceeding this face additional scrutiny and fines.

How Digital Receipts Help Minimize Chargebacks

• Instant Access for Customers: Receipts are automatically delivered to the cardholders mobile browser, merchant apps, or stored locally on the device via PDF export.

• Merchant Copies Stored Securely: ReceiptHero stores a merchant copy in the merchant portal, accessible for future reference or dispute resolution.

• Tamper-Proof Records: Receipts are timestamped, immutable, and linked to the original transaction.

• Improved Dispute Response: With digital access to receipt data, merchants can quickly respond to chargebacks with documented proof.

Industry Scenarios and Use Cases

In brick-and-mortar quick-service restaurants, where volumes are high and customer turnover is fast, order disputes are common. ReceiptHero captures each transaction in real time and stores both the customer and merchant copy, allowing staff to retrieve the receipt easily if a dispute arises.

Retail shops selling high-value or frequently returned goods—such as electronics or clothing—can use ReceiptHero to reduce fraudulent returns. A clear digital trail linked to the customer’s card discourages misuse and enables straightforward verification.

In local service businesses like salons or bike repair shops, where customers might forget the exact services provided or the total charged, a detailed digital receipt ensures transparency and minimizes back-and-forth.

Get Started with ReceiptHero

We integrate directly with leading POS and terminal providers. Our solution works in the background to ensure a seamless digital receipt experience.

Protect your business and reduce disputes. Get in touch with ReceiptHero.