How to Avoid Fraudulent Chargebacks?


Unfortunately, the ingenuity of scammers has no limits. There is not only friendly fraud but also many other types of it when you open an IBAN account. So how to protect your money and reputation? For example, in the Maxpay merchant account, you can use Ethoca. Let us discuss this tool as well as the most common types of fraud.

Chargeback Protection: Learn the Types of Fraud

In addition to friendly fraud, there may be other reasons for chargebacks.

Regular payments

The client may not understand why they are regularly debited and submit a chargeback. The seller needs to notify the client that after paying for the product or service, regular payments will occur.

The exact date of receipt

If, when placing an order, the exact date of receipt is indicated, and the goods are delivered later, the client can easily dispute the payment, and the bank will transfer the money back.


When purchasing services, the client must agree to the offer on the site, which describes all the rules, including the conditions for return or cancellation, in a separate section. If the client did not agree with the offer anywhere, they could use it for a chargeback.

Partial prepayment

If the client makes a partial prepayment, they must be notified by the seller on the site (at the time of making the order) before the payment about the methods of paying the remaining amount. If there is no such notification, they may request a refund.

Chargeback Protection: Ethoca

What one can apply for chargeback protection in Europe? In the Maxpay account, they provide an Ethoca alert service. It is one of the best ways for chargeback protection as well as for the protection of funds and the reputation of the merchant.

Ethoca stops disputes before they turn into chargebacks. Due to Ethoca services, you can:

  • get instant notifications about all the disputes
  • react to them immediately
  • avoid paying fees for disputes
  • improve the customer service

The principle of Ethoca work is simple:

  1. A customer notifies the bank about the desirable chargeback.
  2. The bank confirms the data.
  3. Ethoca then sends a notification to the merchant.
  4. The latter responds to the dispute and solves the issue with the client before it turns into a chargeback.

Chargeback Protection: Other Measures

If the service or product was given to the client, and the situation requires additional investigation, the following information must be provided:

  • Name of service or product
  • The status of the service or delivery of goods
  • Registration data of the customer
  • How long ago the customer was registered and whether they bought from you before
  • Documents confirming the provision of services and delivery of goods (checks, invoices, etc.) and print screens from the system.
  • Additional information that may help in challenging the transaction (correspondence with the client or other contacts with the client, scanned copies of documents, if any).

All this info is necessary when you open a merchant account for chargeback protection. Try out Maxpay and Ethoca and never lose money to fraudsters.