Chargeback from Online Casinos: How Does It Work?

There are many virtual establishments for gambling enthusiasts online. Visitors to online casinos can place bets on various slot machines and withdraw winnings. To do this, you need to register and deposit funds. In some cases, clients of virtual clubs can request a refund through the Chargeback procedure for payments made via a bank card. This practice is widespread in foreign casinos, but is very rarely applied in Russian-speaking establishments. This is due to the high risk of fraud by players. A gambler can make a deposit, lose money, and then request a refund, claiming that the payment was made without the client’s knowledge.

What is Chargeback in a casino

Chargeback is the procedure for a refund initiated by the card-issuing bank, which returns the money from the acquirer’s account – the bank that receives the funds. The issuing company acts in the interests of its client. However, to start the chargeback process, the cardholder must provide evidence of an unauthorized payment, such as a photo of a suspicious purchase made with the card, the date of the financial transaction, and other facts.

The client submits the documents to the issuing bank, which then sends the claims and evidence to the acquiring bank. If there is substantial evidence, the companies side with the cardholder. If the cardholder’s complaint is refused, the request is forwarded to the international payment system. In cases of fraudulent activity, serious sanctions are imposed on the client. Using the chargeback procedure to recover lost money in an online casino is considered fraud. However, if a payment is made from a card without the cardholder’s knowledge, the money can be refunded.

Features of Chargeback in a casino

A visitor to a virtual establishment can initiate the Chargeback procedure for various reasons, each of which has a unique code. It is advisable to specify this code when submitting an application to the issuing bank. It is necessary to observe the deadlines for submitting the request – no later than 120 and 180 days from the date of the transaction for MasterCard and Visa cards, respectively. A gambler can request a refund, for example, in case of violations by the casino, unauthorized or erroneous transfers. The Chargeback procedure works as follows:

  • Drafting a letter demanding a refund.
  • Submitting an application to the issuing bank to dispute the payment.
  • Providing a list of supporting documents.
  • Initiation of the Chargeback procedure by the issuing bank.
  • Reviewing the application and responding to the client.
  • Refunding the money or refusing payment.

A payment can be disputed if it was made in a licensed casino and online gambling is legal in the country. Another important condition for a refund is the method of conducting the transaction – which bank accepts deposits. If fraud is detected on the part of the player, the casino has the right to block the account and gaming account, and the bank may refuse to provide services to such a client.