Running a business in high-risk e-commerce, iGaming, SaaS, or digital services is an exciting journey – but it comes with its fair share of bumps in the road. Among them, chargebacks are arguably the biggest headache for merchant owners.
At Genome, our team stays in touch with international founders and financial managers, and we know how frustrating it is to see hard-earned revenue tied up in payment disputes. Not to mention the anticipation that elevated dispute rates might jeopardize your payment processing setup altogether.
The good news? You don’t have to stay on the defensive. Today our team has prepared a guide on how to reduce chargebacks on card payments. We will also explain how modern tools, such as Open Banking (Genome’s instant bank payments), can help you eliminate card chargeback risks entirely.
Why chargebacks hit high-risk businesses so hard
If your business is considered high-risk, you know that payment processors closely monitor chargebacks, disputes, and other transaction activity. This is especially common for businesses selling digital products, offering subscriptions, or serving customers in several countries.
A rising dispute ratio can result in:
Higher processing fees and larger reserves;
Account freezes or increased rolling reserve requirements;
Account termination and possible placement on MATCH or TMF lists.
Most payment disputes fall into three categories:
true fraud (stolen card details;
merchant error (fulfillment or communication issues);
friendly fraud (when a buyer legitimately purchases something but disputes the transaction with their bank later).
Because traditional card network rules lean heavily in favor of the cardholder, friendly fraud is particularly tricky to fight. That is why having a proactive chargeback prevention strategy in place is essential for keeping your business healthy and growing.
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Smart tactics to reduce chargebacks on card payments
Alternative payment methods can help reduce risk, but it is still important to improve how you handle credit and debit card payments. Here are three practical ways to protect your card transactions:
Make your billing descriptors crystal-clear
Have you ever looked at your own bank statement and struggled to recognize a purchase? The same thing for sure can happen to your customers as well! Unrecognized billing descriptors are one of the leading triggers of accidental chargebacks.
Pro-tip: Make sure your Doing Business As (DBA) name, recognizable brand name, and customer support contact details appear clearly on your customer’s statement – not an obscure corporate parent entity name.
Make refunds easier than disputes
If a customer is unhappy with a purchase or wants to cancel a subscription, it should always be easier for them to reach your team than to call their bank.
Provide responsive, human support via live chat or email.
Process legitimate refund requests quickly.
Issuing a direct refund costs a fraction of a card dispute penalty fee ($20–$100 per chargeback) and keeps your merchant standing clean. Simply making support accessible is one of the fastest, most human ways to reduce chargebacks.
Strengthen your fraud protection
Card payments need reliable, automated checks to reduce fraud without adding unnecessary friction at checkout:
3D Secure 2 (3DS2): Verifies the shopper’s identity and may shift liability for certain unauthorized transactions away from your business.
AVS and CVV checks: Compare the billing address and card security code with the details held by the card issuer.
Velocity and device checks: Flag unusual activity, such as sudden purchase spikes or several transactions made from the same device within a short period.
The game-changer: bypassing card networks with Pay by Bank
While anti-fraud tools help lower dispute rates on cards, traditional card rails inherently carry chargeback mechanisms. But what if you could offer a payment method where card chargebacks simply don’t exist?
Enter Pay by Bank – a feature powered by Open Banking payments.
Payment method | Transaction flow | Security & chargeback risk |
Traditional cards | Customer ➔ Card networks ➔ Issuing bank ➔ Merchant | Vulnerable to friendly fraud and 120+ day chargeback windows |
Pay by Bank (Open Banking) | Customer ➔ Direct bank app (SCA auth) ➔ Merchant | Zero card network involvement = Zero card payment-related chargebacks |
How Open Banking eliminates card chargeback risk
Usually, when your customers choose Pay by Bank at checkout, this is what happens:
They select their bank and are redirected directly to their banking app.
They log in and approve the payment using Strong Customer Authentication (SCA), like FaceID, TouchID, or a secure passcode.
The transfer is completed directly between accounts via instant bank rails (such as SEPA Instant).
Since customers approve the transfer through their own banking app or online banking, these payments are not subject to traditional card chargebacks. It helps reduce friendly fraud risk and gives you faster access to settled funds.
At Genome, our mission is to break down financial borders and make payment management effortless for growing businesses. We offer a complete ecosystem designed to keep your funds safe, your checkout smooth, and your team in full control. To do so, we offer a set of merchant tools that can help!
Instant bank payments for zero-chargeback checkout
By integrating Genome’s instant bank payments, you can give your European customers a fast, cardless way to pay. Powered by Open Banking payments, this Pay By Bank method allows customers to pay merchants via SEPA Instant and Credit Transfers. Funds land directly in your account in seconds, completely bypassing card networks and eliminating card dispute risks for those transactions.
Not only that, but we also provide hosted payment pages that allow you to set up a checkout page quickly and with minimal involvement from your developers’ team. If you need to launch fast, this service is a must.
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Dedicated merchant accounts & security built for growth
Looking for a reliable payment partner? Opening a specialized Genome merchant account gives you access to a complete business finance hub:
Tailored high-risk & low-risk accounts: Pricing structures built around your specific industry and business needs.
Multi-currency business account: Effortlessly hold, exchange, and transfer funds in 12 currencies: EUR, USD, GBP, PLN, CHF, JPY, CAD, CZK, HUF, SEK, AUD, and DKK
Bank-grade fraud protection: Full PSD2, GDPR, and DORA compliance, combined with real-time transaction monitoring and automated risk controls to keep your card channels safe.
Easy API integration & hosted pages: Simple setup options so you can start accepting payments smoothly.
Ready to elevate your payment strategy?
Effectively managing payment risk doesn’t have to mean constantly fighting fires. By combining strong card security practices with modern, chargeback-free payment options like Pay by Bank, you can protect your revenue and focus on what truly matters – scaling your business.
Want to learn how we can help safeguard your payments? Explore a dedicated Genome merchant account and start accepting secure Genome instant bank payments today!
