Cathy Beardsley, President and CEO of Segpay, highlighted the importance of detailed receipts in building consumer trust and reducing chargebacks, particularly for online transactions. Her insights, published on October 16, 2026, emphasize that clear, itemized receipts can prevent disputes and improve merchant stability.

Beardsley noted that while the Federal Trade Commission (FTC) does not specifically mandate merchants to send receipts, they are crucial for consumers to verify purchases and for merchants to demonstrate compliance with legal obligations. Receipts also serve as proof for returns or disputes and help merchants meet card network and consumer protection requirements related to order confirmations.

The Rising Challenge of Chargebacks

Chargebacks, a consumer protection mechanism, allow cardholders to dispute transactions they claim are incorrect or fraudulent, leading to a reversal of payment to the retailer. Common reasons for chargebacks include unauthorized transactions, dissatisfaction with a purchase, or failure to receive goods or services. For retailers, chargebacks result in administrative overhead, wasted resources, and reduced profits. Payment providers may also impose financial penalties or terminate accounts for merchants with excessive chargebacks.

Digital goods are identified as one of the highest-risk categories for chargebacks. This is due to their instant delivery, which lacks the shipping confirmations and delivery receipts typically used to prove a physical transaction's completion. Dispute volumes are increasing as banking apps allow customers to file chargebacks in seconds, and "friendly fraud" is common. Confusion surrounding subscription billing also contributes to this trend. The true cost of each dispute extends beyond the lost product, making prevention a more efficient strategy than fighting disputes after they occur.

Global chargeback transaction volumes are projected to increase by 42% from 2023 to 2026, driven by the rise in online payments. This underscores the need for businesses to implement processes to prevent fraudulent transactions and communicate clearly with customers to minimize misunderstandings that could lead to chargebacks.

Key Elements of an Effective Receipt

Beardsley outlined three critical components for effective receipts: transaction details, billing terms, and customer service information. Transaction details should clearly state what was purchased, including the company name or URL, the transaction date and time, and the payment method with the last four digits of the account. A unique transaction or purchase ID is also necessary for merchant identification. For subscriptions, wallet loads, or membership sites, receipts should include any required username or access information.

Billing terms must be clearly articulated, especially for subscriptions. For instance, if a three-day trial will rebill for $29.95, the consumer needs to understand when the next charge will occur. Transparency is key, ensuring consumers know when a trial transitions to a paid subscription, what follows, and how to cancel.

Customer service information should be easily accessible, including a self-service customer service website, support phone numbers, and email contact information. This helps consumers get assistance without resorting to their bank.

For recurring billing, additional card network requirements apply. Visa, for example, mandates that merchants notify consumers at least seven days before a trial, introductory offer, or promotional period ends and recurring billing begins. This notification must specify the amount and date of the upcoming transaction and provide a simple cancellation method.

Cross-sales and member-area upsells also require detailed receipts for each unique purchase after the initial signup. This transparency is crucial for maintaining healthy chargeback and fraud ratios, with receipts clearly identifying the purchase and explaining cancellation or customer support options.

Ensuring Receipt Delivery and Impact

A receipt that ends up in a spam folder is effectively never sent. Merchants must ensure receipts originate from a recognizable address and use a name matching the website where the purchase was made. The billing descriptor should also align with what appears on the consumer's statement. Subject lines should be clear, such as "Your receipt from [Merchant]," to avoid being mistaken for promotional material. Transactional receipts should be sent from a different address or subdomain than marketing emails to prevent customers who unsubscribe from promotions from inadvertently blocking their receipts.

Timeliness is also important; receipts should be sent immediately upon transaction approval, not in a nightly batch. Consumers typically expect confirmation within minutes of completing a purchase. Delays can lead them to contact their bank instead of customer service.

Monitoring bounce rates and failed sends is essential. If receipts are not reaching customers, chargeback and fraud ratios may increase. Bounced emails can also indicate fraudulent transactions where fake email addresses are used.

Beardsley emphasized that the receipt is often the last consumer interaction in the buying process and can be a simple yet effective chargeback prevention tool. A clear, itemized, and delivered receipt costs little beyond proper setup and can prevent "I don't recognize this charge" disputes from reaching the bank. The receipt can also serve as an opportunity to leave a positive impression and encourage repeat business.

Key Facts

  • Cathy Beardsley, President and CEO of Segpay, published insights on detailed receipts on October 16, 2026.
  • The Federal Trade Commission (FTC) does not specifically require merchants to send receipts.
  • Global chargeback transaction volumes are projected to increase by 42% from 2023 to 2026.
  • Digital goods are a high-risk category for chargebacks due to instant delivery and lack of shipping confirmations.
  • Effective receipts require clear transaction details, billing terms, and customer service information.
  • Visa requires merchants to notify consumers at least seven days before recurring billing begins after a trial.