Payments and cashier

Chargeback: a payment reversed through the bank

A chargeback (card dispute) is the reversal of a card payment through the player's bank: the amount is taken back from the operator, plus a fee for handling the case. Card schemes track the chargeback ratio, and above the threshold the operator faces fines and the loss of processing.

Yevhen SychovOctober 2026

How it works

The player disputes a payment through their bank: they did not make the transaction, did not receive the service, or were charged twice. The bank returns the money to the card, and the acquirer or PSP debits the amount from the operator and charges a handling fee, for example €25 per case.

Chargeback ratio = chargebacks in the month / card payments in the month x 100%For example, 30 chargebacks on 4,000 card payments: 0.75%.

The exact formula and thresholds are set by the card schemes and the acquirer, and they change. Above the threshold the merchant enters a monitoring programme: fines, a remediation plan and, in the worst case, loss of processing.

A common case in gambling is friendly fraud: the player deposited the money themselves, lost it and disputes the payment as if they had never made it. It also covers cases where a family member used the card without asking. A chargeback after a big loss can be a sign of problem gambling: such a player is reviewed under the responsible gambling rules.

How to reduce them

  • A clear descriptor: a name on the bank statement that the player recognises. An unfamiliar charge is the first to be disputed.
  • 3-D Secure and KYC: the card is in the player's name, and the payment is confirmed by the cardholder.
  • Limits for new accounts and new cards, until there is a payment history.
  • Fast support replies. A player who gets an answer is less likely to go to the bank. In a disputed case it is cheaper to refund the payment yourself: a refund does not count towards the chargeback ratio.

How to dispute

The operator responds to the acquirer with an evidence pack: the player's KYC, 3-D Secure confirmation, IP and device, the betting history on this money, the accepted terms, past undisputed deposits from the same card and the support chat history. Build the pack automatically: the response deadline is short, and the acquirer sets it.

Common mistakes

  • Not responding to the dispute. Without a response the chargeback is lost, even if the player made the payment themselves.
  • The account stays open. Until the dispute is resolved, the account is paused, otherwise the player keeps depositing from the same card.
  • Offers go to a player with an open chargeback. A payment dispute excludes the player from all mailings.
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