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Insights and Expertise

The future of dispute management: Turning

pain points into strategic advantages

Companies that rely on manual processes or fragmented
data find it increasingly difficult to respond within ex-
pected timeframes. The result: higher costs, slower resolu-
tions and a greater risk of customer attrition. With dispute
volumes rising, manual processing becomes not just inef-
ficient but unsustainable.
Transforming the dispute lifecycle

The future of dispute management lies in automation,
integration and AI. Automation replaces repetitive, error-
prone tasks like document gathering, case routing and
data entry.

AI introduces intelligence and adaptability, identifying
dispute patterns, predicting likely outcomes, and flagging
anomalies before they escalate.

Together, these tools create a dispute management frame-
By Casey Scheer work that is faster, more accurate and more resilient.
BHMI

s the global payments ecosystem becomes
faster and more interconnected, the challenges
around dispute management are intensifying. Dispute management, a
A Real-time payments, digital wallets and open competitive differentiator
banking have transformed how money moves, but they've
also raised the stakes for accuracy, transparency and Dispute management was once viewed as a back-
responsiveness. office necessity, largely invisible to customers
and executives alike. That perception is rapidly
For many financial services companies, the surge in dis- changing. Faster payment rails, rising fraud so-
putes is exposing the limits of legacy back-office systems phistication and higher consumer expectations
and manual workflows. What was once a routine opera- are forcing organizations to resolve disputes
tional function has become a strategic differentiator. with greater speed, accuracy and transparency.
Disputes on the rise: A growing operational pressure At the same time, dispute costs are climbing.
With global chargeback volumes projected to
The speed of payments has outpaced the systems designed grow sharply through 2028, even small inef-
to manage them. In a world where consumers expect near- ficiencies multiply quickly across millions of
instant settlements, even minor errors or delays can trig- cases. Legacy systems and manual workflows
ger disputes. The complexity multiplies when you add in struggle to keep pace, increasing operational
the growing sophistication of fraud and the increasing risk and customer frustration.
number of payment touchpoints such as merchants, net-
works, gateways, processors and issuers.
Modern dispute platforms shift the equation. By
automating routine tasks, integrating transac-
This convergence of speed and complexity is pushing tion data across systems and applying AI-driven
dispute volumes higher while stretching operational re- insights, organizations can reduce costs while
sources thinner. In a recent Mastercard document titled improving outcomes. In this environment, dis-
"What's the true cost of a chargeback in 2025?" (https://ti- pute management is no longer just damage con-
nyurl.com/2s4x26v8), global chargeback volume is forecast trol. It’s a measurable driver of efficiency, com-
to grow 24 percent from 2025 to 2028, reaching 324 mil- pliance and long-term customer trust.
lion transactions per year, and each dispute costs between
USD 9.08 and USD 10.32 to process on average.

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