Chargebacks, refunds and what happens to your balance
The least fun part of getting paid online, explained before it happens to you.
Money that has arrived can leave again. It is worth understanding how before it does.
What a chargeback is
A fan pays. Later they contact their bank and dispute the charge. The bank reverses it and takes the money back from the platform, which takes it from the balance it was credited to.
This can happen months after the original payment.
Why they happen
Most are not fraud in the way people imagine.
Unrecognised line item. Someone sees a charge they do not recognise on a statement and disputes it. Your platform name on the statement is not your artist name.
Shared cards. A family member used the card.
Buyer's remorse, dressed as a dispute because it is easier than asking for a refund.
Actual card fraud exists but is a minority.
What it means for you
The amount comes off your balance. If your balance is lower than the reversal, it goes negative and future earnings cover it.
This is standard across every platform that handles payments. It is not a policy we chose; it is how the card networks work.
Reducing them
Be recognisable. If people know what will appear on their statement, they dispute less.
Refund quickly when asked. A refund costs you the amount. A chargeback costs you the amount plus a fee plus a mark against the platform. If someone asks, say yes.
Be careful with very large first-time payments. A first-time supporter sending an unusually large amount is more often a stolen card than a superfan. It is worth a message.
The honest summary
A small percentage of online payment revenue reverses. Budget for it rather than being surprised by it, and do not spend a balance the day it appears.