Chargebacks Are Costing More Than You Think
July 7, 2025
Mastercard’s 2025 report highlights an alarming rise in chargeback costs, with nearly 60% driven by fraud — particularly from card-not-present (CNP) transactions. Keyno’s Dynamic CVC solution helps issuers and merchants prevent fraud at the source, reducing disputes and protecting both revenue and reputation.
Chargeback Trends and Global Outlook: What’s the true cost of a chargeback in 2025?
Chargebacks are no longer just an operational nuisance — they’ve become a major financial liability. According to Mastercard’s recent report, “What’s the True Cost of a Chargeback in 2025?”, nearly 60% of all chargebacks are now fraud-related, primarily stemming from card-not-present (CNP) transactions.
As ecommerce continues to grow, so do the risks. Fraudsters exploit static card credentials like traditional CVC codes, using stolen data across multiple platforms before it’s detected. This leads to unauthorized purchases, consumer frustration, and an overwhelming volume of chargebacks for banks and merchants to resolve.
Keyno’s Dynamic CVC2 solution is built to stop this cycle.
Rather than relying on a fixed security code printed on the card, Keyno replaces it with a dynamic CVC that updates several times per hour via a secure mobile app or embedded card display. Even if a card number is compromised, the rotating code renders stolen data useless — preventing fraud before it happens.
The impact is clear:
· Significantly fewer fraudulent CNP transactions
· Lower chargeback volumes and dispute management costs
· Increased trust and satisfaction for cardholders
Fraud prevention is more effective — and far less expensive — than remediation. With Keyno’s Dynamic CVC, financial institutions and merchants gain a proactive defense against today’s fast-evolving digital fraud threats.
