Understanding Chargebacks: What Players Need to Know

There is a fine line between fraudulent and valid chargebacks. To prevent any complications and to give you a complete overview, our team of experts has come up with a complete guide where you can learn everything you need about chargeback processes.

What Is A Chargeback?

Investopedia defines chargeback as the amount of money returned to a debit or credit card after a customer disputes a transaction or returns the bought goods. So yes, you ask for your money back when you don’t get the agreed services.

The merchant’s or cardholder’s bank can start the chargeback process – in this case, your casino is the merchant, and you are the cardholder.

Chargeback claims have to follow legal processes and laws for them to stand. For example, federal law requires that every chargeback be made within 60 days of the transaction date – and a fee is needed to start the process.

You must understand that chargeback claims can only be made to your bank – and your bank will not always take your side. In most cases, your bank will thoroughly investigate to ensure your chargeback reason is valid. Make sure you are completely familiar with how casino payments work before diving into chargeback requests.

Risks to be Aware of When Starting a Chargeback Dispute

Chargeback processes usually cost a lot for the merchant’s account and the issuer – and they don’t always end up in the customer’s favor. Casinos have all the tools to fight chargebacks and prevent returning your money. So, it is crucial to think twice before you file a chargeback.

When you start a chargeback, you are in communication with only the bank issuer and not the bookie – this is because chargeback is a legal process that cannot occur without the help of the customer.

The outcome of a chargeback process depends on various factors, and it doesn’t always end up victorious for gamblers. It could even result in jail time if it is not done correctly.

If you’re using digital currencies for your online gambling payments, you will not be able to request chargebacks. However, you can find from our experts what other safety benefits crypto payments bring to your online gambling sessions.

The Chargebacks are Valid in Some Unique Cases

While some cases of chargebacks are usually fraudulent, there are unique cases where the claim is valid – and enough proof is needed to win the dispute.

In valid cases of chargebacks, compelling evidence like screenshots of credit card transactions, credit card statements, and merchants’ accounts are required for the bank to accept the chargeback. Players can still encounter various problems, even in valid Chargeback claims – especially when their money is not returned.

If the Provided Services are a Red Flag or Harmful

A chargeback claim is valid if the services provided by the casino are harmful or not as agreed. For instance, some fraudulent casinos hold back players’ winnings and will not allow players to play casino games after they make a deposit.

If you ever find yourself on a site that does this, you can make a valid case for harmful services. Your first complaints should always be to the casino – you can make a chargeback claim if the site does not respond to your complaints.

If the Gambling Products are Rigged

Cases of substandard Gambling products where a game has a rigged RNG or does not pay players their winnings are enough to start a chargeback process. However, they are challenging to investigate because it involves checking casino records.

Some casinos indulge in unfair practices, like manipulating game outcomes and offering games not controlled by legitimate regulators. While this makes a good case for a chargeback process, it is usually unfavorable for the cardholder.

When There are Unauthorized Payments

Payment processing is a regular activity in gambling platforms – and casinos usually have access to personal data to ensure the transaction amount gets to the correct account. Casinos also enforce ID verification as an essential process during payment transactions because it helps the site confirm accurate credit card payments.

When an unauthorized payment is made, you can raise a chargeback claim to your bank and the money will be returned to you – some players take advantage of this to make fraud chargebacks.

How to Start a Chargeback Process in 2024?

Every gambler needs to learn how to start a chargeback. Although the steps involved in the chargeback process get refined year after year, they still maintain a constant core.

1. Address Customer Support Before Initiating any Chargeback

The first thing to note before starting a chargeback is that the merchant account or casino site should first be notified of the problem. This is important because it gives the cardholder a much larger claim in the long run and prevents little things from blowing out of proportion.

You can start a chargeback process if customer support does not address your problem promptly. However, playing on the best online casinos out there will ensure you have access to responsive and understanding customer support teams.

2. Speak to your bank

You can speak to your bank if you don’t get a solution to your complaints from customer support – tell your bank why you are making the chargeback claim, and they will decide what they can do to help.

Some banks will uphold or reject the chargeback based on your submitted evidence. No particular factor determines if the bank accepts or disputes the chargeback – the interpretation of your claims is entirely up to the bank. Things can get a bit frustrating at this stage – but keep calm.

After your bank confirms the validity of your chargeback claim, they will tell the merchant’s account to refund your money temporarily. This money will only be removed from your account if the chargeback process is unsuccessful, which could put you in a bad situation with the casino.

3. Collect Fraudulent Evidence

Ensure you present compelling evidence to make the chargeback process faster and more convenient for the player and the casino. The evidence will be presented to your bank and card issuer – and they usually include screenshots of credit card payments, original transactions, credit card transactions, and credit card statements.

The issuer reviews the chargeback evidence and determines its authenticity. When you present evidence to the bank, your chances of getting your money back after the chargeback has been filed increase.

All You Need to Know About Reverse Chargeback

Reverse Chargeback is a process that occurs when an issuer reviews a chargeback and discovers the transaction was authentic – and the player’s chargeback claim was invalid. It is a procedure that helps merchants get their money back. Banks study the evidence of a chargeback claim to confirm its accuracy. Merchants can fight the chargeback code if it is not eligible.

Like with Chargeback claims – Merchants also fight chargebacks by providing evidence, such as receipts of significant credit card transactions and authorization documents.

The issuing bank then reviews the evidence – and decides if they will reject or accept the chargeback. Merchants can solicit for a chargeback reversal through a process known as representments – the merchant represents the transaction and evidence to the acquiring bank to support their claim.

Remember that Online Gambling Sites Have the Necessary Tools to Tackle Your Chargeback

One fact every cardholder or player should get right when making a chargeback claim is that online gambling sites have all the tools needed to dispute your chargeback.

If your chargeback claim is unsuccessful – you can serve jail time or get banned from playing on other gambling sites. So, you have to ensure you are going to the bank with substantial evidence enough to validate your claim.

Your Actions Must Have Legitimate Reasons Behind

Chargebacks have legal consequences – so every stage of the process must be backed by solid evidence. We are in an age where players are beginning to take advantage of the process to make fraudulent chargebacks – and cause negative consequences for themselves and the merchant. Make sure your claims are for solid reasons before contacting the issuing bank.

Even if You’re Right, Online Casinos Can Close Your Account After a Chargeback

Online gambling platforms reserve the right to close your account if you violate terms and conditions – so even if your chargeback claim ends up victorious, your account can still be banned.

Your Bank Account Can be Suspended After a High Number of Chargebacks

Earlier in this post, we mentioned that some players take advantage of chargeback – one of how players take advantage of the process is by making many chargeback claims without any valid reason.

When a Merchant discovers an account that has filed many chargebacks, they suspend the account and put it on a blacklist. Other chargeback-related conditions that can put a customer on the blacklist include – chargeback abuse, chargeback fraud, and friendly fraud chargeback.

Our Tips to Prevent Unnecessary Chargebacks

You cannot stop chargebacks – but various tips can help reduce unnecessary chargebacks:

1. Ensure you have a valid reason for the chargeback
2. Try to resolve the dispute with the online casino
3. Read the terms very carefully
4. Visit only sites approved by authorities like MGA, UKGC, ONJN, Curacao, et cetera – many present on our website! – learn more about unlicensed casinos!
5. Don’t you ever think about scamming the merchant by doing fraudulent chargebacks!

KingCasinoBonus.com’s Conclusion About Casino Chargebacks

In our expert’s opinion, chargebacks are not leaving the gambling industry anytime soon – they are legal processes that can lead to severe consequences if they are not done correctly. Players must understand the risks of starting a chargeback and learn how and when to start them. It’s also important to choose the best banking method for your region to ensure you don’t encounter any local banking problems.