Payments have become a critical trust layer, shaping how customers perceive the brand long after checkout. With high return rates, seasonal peaks and cross-channel purchasing now the norm, disputes and chargebacks are rising in complexity as well as volume. For omnichannel fashion brands, the challenge is to reduce friction and protect margins without undermining customer loyalty…
Fashion’s unique dispute profile
Few sectors experience the same combination of high return frequency, fit-related dissatisfaction and impulse purchasing. Add to that click-and-collect, in-store returns for online purchases, and international shipping, and the potential for misunderstandings (and disputes) increases.
Chargebacks are no longer driven solely by fraud. In many cases, they stem from:
- “Item not received” claims linked to doorstep delivery issues
- Unclear return processing timelines
- Customers using chargebacks as a shortcut to refunds
- Subscription or recurring payment confusion
For fashion retailers operating at scale, even small percentage increases in disputes can significantly erode margin.
The post-purchase journey is the new battleground
Leading fashion brands are treating the post-purchase journey as a strategic CX moment, not an afterthought. Clear, proactive communication reduces uncertainty, and uncertainty is often what drives disputes. Best practice includes:
- Real-time delivery tracking with visible proof-of-delivery
- Transparent returns timelines and status updates
- Immediate confirmation when refunds are processed
- Clear contact pathways before a chargeback becomes a dispute
When customers feel informed, they are less likely to escalate prematurely.
Linking payments and customer service
Historically, payments and customer service have operated in silos. In an omnichannel world, that separation no longer works. Fashion retailers are increasingly integrating dispute data with CRM and order history, allowing service agents to see the full picture before responding.
This improves resolution speed and reduces defensive interactions. It also helps identify repeat dispute patterns — distinguishing between genuine customer friction and first-party abuse.
Protecting margin without alienating customers
The key tension is balancing protection with trust. Overly aggressive fraud controls or rigid returns policies can increase friction and push customers toward competitors.
Instead, high-performing brands use risk-based approaches: applying stronger verification for high-risk transactions or serial disputers, while keeping the experience seamless for trusted customers.
Payments as part of brand experience
In fashion, brand equity is everything. A poorly handled refund or unresolved dispute can undo the impact of marketing and product investment.
By viewing payments, disputes and chargebacks as part of the customer experience, rather than purely financial processes, omnichannel retailers can reduce losses while strengthening loyalty.
Payments are not just about authorisation. They are about reassurance, and reassurance builds trust.
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