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  Everything igaming Merchants Need to Know About Chargebacks

kokou adzo



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igaming merchants often find themselves tangled in the web of chargebacks, a puzzle causing a great deal of frustration. Each card network crafts its own playbook for chargeback procedures, adding to the maze of rules and regulations. While the basics align across networks, there are notable differences when it comes to timeframes and deadlines.

These diverging timelines can unexpectedly trip up a merchant, leading them to skip a deadline they believed was far off. This misstep not only costs them the chance to contest the chargeback but might also incur extra fees for missing the window of response. While it would be best to take swift action when dealing with chargebacks. However, understanding the precise time available is vital, allowing room for unexpected delays.

Remember, almost every card network sets timeframes for different phases within the chargeback process to prevent prolonged disputes. Both parties involved in a dispute must adhere to these time limits. These set deadlines by the card networks serve to set up the duration of each process stage, allowing ample time for both sides to gather necessary information required for subsequent steps. This structured approach ensures clarity and facilitates the progression of the resolution process. Online casino merchants can take several steps to prevent chargebacks, one of which would be to utilize an igaming payment processing service.

Why do Chargebacks Usually Occur?

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Instances prompting a chargeback typically revolve around cases of fraud affecting cardholders. This encompasses various scenarios such as merchant fraud or more commonly, incidents involving lost or stolen credit cards, and account breaches. Lost credit cards become grounds for a chargeback when an unauthorized person employs a discovered or stolen card for purchases without the cardholder’s approval.

In cases involving stolen payment credentials, where fraudsters gain unauthorized access to credit card information via means like database breaches, phishing scams, or server intrusions, the cardholder retains the right to initiate a chargeback for any illicit transactions. Account takeover attacks can also result in chargebacks. These attacks represent scenarios where scammers infiltrate a customer’s account from an online casino or e-commerce platform and utilize stored payment details for personal purchases. In such cases, the cardholder holds the entitlement to request chargebacks for these transactions.

Online casino merchants are advised not to contest genuine fraud-based chargebacks. However, situations arise where customers falsely dispute a charge as fraudulent, termed as friendly fraud. With substantial evidence, merchants possess the ability to challenge these chargebacks and potentially have them overturned.

At times, merchants might unintentionally charge customers multiple times for a single purchase, or there could be instances where shipped merchandise goes missing or arrives damaged. Typically, online casinos and e-commerce stores promptly issue refunds upon being notified of such issues. However, if a merchant declines to provide a refund, the cardholder has the option to initiate a chargeback. It’s expected that card holders first attempt to resolve these problems directly with the merchant before disputing a charge. However, financial institutions don’t consistently enforce this prerequisite.

It is also worth mentioning here that igaming platforms and other types of merchants cannot contest valid chargebacks resulting from these situations. Nonetheless, they can proactively prevent such occurrences by maintaining easily accessible customer service channels and implementing a refund policy that facilitates customers in obtaining a satisfactory resolution effortlessly. This approach serves as a proactive measure to minimize the likelihood of chargebacks stemming from these issues. Plus, using a high risk payment processing service like can also help in minimizing issues like these.

What is the Ideal Chargeback Response Time for Merchants?

Merchants’ response time to a chargeback depends on the card network involved, yet the prevailing timeframe is often 30 days. It’s crucial to note that this duration is calculated from the chargeback filing date, which might precede the merchant’s notification by several days. Hence, merchants should be mindful that their window for responding to a chargeback is typically within this 30-day period, starting from the filing date rather than their notification date.

For effective chargeback management, it’s essential to acquaint yourself with the specifics of every card type your business accommodates. Avoid finding yourself in a situation where a chargeback catches you off guard, resulting in financial losses due to missing deadlines. Familiarity with the intricacies of each card’s chargeback process is key to preventing such occurrences and safeguarding your business interests.

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Preventing Chargebacks through igaming Payment Gateways

It’s crucial to note that igaming and other types of merchants receive chargeback notifications from their acquiring bank rather than directly from the card network. This distinction is significant because there might be a delay of one or more days before you’re informed about a chargeback. As a result, valuable time within the time limit could have already elapsed before you’re notified.

Collaborating closely with your acquirer becomes pivotal to ensure timely notifications, allowing you to take prompt action within the stipulated timeframes. While being mindful of how chargebacks work is vital, it is important to prevent them by using an igaming payment processing solution for your online casino. By doing so, you will be able to prevent such issues with ease.

Kokou Adzo is the editor and author of He is passionate about business and tech, and brings you the latest Startup news and information. He graduated from university of Siena (Italy) and Rennes (France) in Communications and Political Science with a Master's Degree. He manages the editorial operations at

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