The Hidden Cost of Chargebacks: How Businesses Lose More Than Money

By Matthew David, CRO Approvely

In industries like eCommerce, daily fantasy sports, CBD, and crypto, chargebacks have become an ongoing challenge. While the immediate financial loss from a chargeback might seem minor, the broader implications can significantly affect your business.

Chargebacks Are a Symptom of a Bigger Problem

Chargebacks often point to deeper issues within your payment processes, customer communications, or fraud prevention measures. Addressing them is crucial to maintaining a healthy business environment.

Potential Consequences of High Chargeback Rates:

● Processor penalties or frozen funds

● Reputational damage among banks and partners

● Loss of customer trust and repeat business

● Internal resource drain to manage disputes and documentation

Even worse, once you’re labeled a “high-risk merchant,” the road back to payment flexibility and trust is steep and expensive.

Trust: The Core Asset at Risk 

In today’s market, customer trust is invaluable. A confusing billing statement, a delayed refund, or a denied transaction can erode the trust you’ve worked hard to build. In high-risk verticals like fantasy sports, telehealth, or online gaming, where regulation and perception are already challenges, chargebacks further complicate customer loyalty. 

And unlike a standard refund, chargebacks remove the customer from your ecosystem, sometimes permanently.

The Operational Burden

Every chargeback triggers a time-consuming investigation, pulling staff away from growth initiatives to fight disputes. It also increases your exposure to fraud if you lack intelligent systems to flag unusual transactions before they escalate.

How Approvely Supports your Business

At Approvely, we understand the complexities of managing chargebacks and fraud. Our solutions are designed to help you navigate these challenges effectively. 

● Advanced fraud detection

● Proactive dispute management and documentation

● Real-time transaction monitoring

● High-risk industry expertise and compliance-first design

Whether you’re scaling an online storefront or developing the next innovative skill-based gaming platform, Approvely makes sure chargebacks don’t hold you back. 

Let’s Talk

If you’re tired of letting chargebacks dictate your margins—or worse, your growth strategy—let’s talk. Approvely is built for businesses like yours. Schedule a call with our team today and discover how secure, seamless payments can put you back in control.

 Get Started.