TL;DR Summary
The Problem: January brings a “Holiday Hangover” for merchants—a projected 50% spike in chargebacks driven largely by “friendly fraud” (customers disputing valid purchases due to buyer’s remorse or confusion). The Cost: In 2024 alone, friendly fraud cost businesses over $103 billion. The Solution: You need a “Hero” partner, not a passive processor. Payscout offers active immunity through:
- Velocity Controls: Stops fraudsters from testing cards on your site.
- BIN & Country Filtering: Blocks suspicious international traffic instantly.
- Clear Billing Descriptors: Prevents the “I don’t recognize this charge” dispute.
- Strategic Support: An MBE partner that fights for your revenue while you recover from the rush.
The decorations are coming down. The inventory counts are mostly done. You survived the Black Friday rush and the last-minute shipping chaos.
But while you are ready to exhale and toast to a successful Q4, a silent threat is looming on the January calendar. We call it The Holiday Hangover.
It doesn’t come from too much eggnog. It comes from the ghosts of transactions past.
Historically, January and February see a massive spike in chargebacks—up to 50% higher than the rest of the year. For merchants who view their payment processor as just a “utility,” this hangover can wipe out a significant chunk of hard-earned holiday profit.
But you don’t have to accept this as the cost of doing business. You can inoculate your revenue right now.
The Diagnosis: Why “Friendly Fraud” Isn’t Friendly
The primary driver of this January spike is “friendly fraud.” This isn’t a hacker in a hoodie stealing credit card numbers; it is often your actual customers.
Recent data projects that friendly fraud attempts spiked 25% between Thanksgiving and Cyber Monday in 2025. Now, as credit card bills arrive in January mailboxes, the reality sets in.
- Buyer’s Remorse: A customer spent too much in December. When the bill arrives, they dispute the charge to claw back cash.
- The “Unrecognized” Charge: A customer bought a gift from your store, “Awesome Gifts Inc.,” but your billing descriptor shows up as “AGI Holdings LLC.” They don’t recognize it, they panic, and they file a dispute.
- Family Fraud: A child used a parent’s card to buy video games or skins during the holiday break. The parent sees the bill and claims “Unauthorized Transaction.”
In 2024, this phenomenon cost businesses a staggering $103 billion.
The Cure: A “Hero” Partner Who Fights Back
If your current payment processor is on “autopilot,” you are exposed. To survive the Holiday Hangover, you need a partner with the Hero Archetype—one that stands between you and the threat, actively defending your margins.
At Payscout, we don’t just process payments; we protect them. As an MBE-certified partner, we take a hands-on, strategic approach to your financial health.
Here is your prescription for a chargeback-free January, powered by Payscout’s Paywire technology:
- Aggressive Velocity Controls
Fraudsters (and bots) love the holiday chaos because they can hide in the volume. They test stolen cards by running small transactions rapidly.
- The Payscout Shield: Our Paywire platform utilizes advanced velocity controls. We detect when a single IP address or card is attempting multiple transactions in seconds and lock them out before the chargeback happens.
- Intelligent BIN & Country Filtering
Did you suddenly get fifty orders from a country you don’t ship to? A standard processor might approve them, eager for the fees.
- The Payscout Shield: We allow you to filter transactions by BIN (Bank Identification Number) and Country. If you sell only in the US and Canada, we automatically block an attempted transaction from a high-risk region, stopping the fraud at the gate.
- The “Clarity” Defense (Billing Descriptors)
The easiest chargeback to win is the one that never happens.
- The Payscout Shield: We work with our merchants to ensure your billing descriptor—the text that appears on a customer’s credit card statement—is crystal clear. It should include your trading name and a phone number. When the customer recognizes the name, they don’t call the bank.
- 24/7 Strategic Support
When a dispute does happen, the clock starts ticking. You often have a limited window to provide evidence (tracking numbers, delivery proof) to win the dispute.
- The Payscout Shield: While giant “box” processors might leave you navigating a chat bot, Payscout provides real, human support. We help you understand the dispute reason codes and gather the right evidence to fight back and win.
Start 2026 With a Clean Bill of Health
The post-holiday season should be a time for planning growth, not fighting disputes.
Don’t let the “Holiday Hangover” headache ruin your Q1. Switch to a payment partner that acts as your immune system. With Payscout, you get the technology to stop fraud and the MBE partnership to drive strategic growth.
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