Understanding Chargebacks (and the $20 / 5% Fee)

A chargeback is when a fan disputes a transaction with their bank instead of using Fansit's in-platform dispute flow. Chargebacks cost you the disputed FanBucks AND a fee. Here's the math.

The fee

When a chargeback hits your account:

The disputed FanBucks are deducted from your wallet (pending first, then available).
A chargeback fee is also deducted: the greater of $20 or 5% of the disputed amount, whichever is greater.

Examples:

| Disputed amount | Chargeback fee | Your total loss | |---|---|---| | $5 (1,667 FB) | $20 | $25 (8,333 FB equivalent) | | $50 (16,667 FB) | $20 | $70 (23,333 FB equivalent) | | $100 (33,333 FB) | $20 | $120 (40,000 FB equivalent) | | $1,000 (333,333 FB) | $50 | $1,050 (350,000 FB equivalent) | | $5,000 (1,666,667 FB) | $250 | $5,250 (1,750,000 FB equivalent) |

Why the fee

Chargebacks cost Fansit a processor fee (usually $15–$25), require manual investigation, and damage our standing with the card networks if we get too many. The chargeback fee covers those costs.

The fee is non-refundable — even if Fansit successfully wins the chargeback dispute on your behalf and recovers the original amount, the fee stays charged.

What triggers chargebacks

The most common reasons fans file bank chargebacks instead of using Fansit's dispute flow:

They didn't know Fansit had a dispute flow — they went straight to the bank.
They want a cash refund instead of FanBucks credit.
They forgot they made the purchase and called the bank thinking it was fraud.
Their bank statement looks unfamiliar — "PERSONA PAYMENTS, what's that?" — see Bank Statement.
A shared card — partner or family member who didn't recognize the charge.
Genuine fraud — the card was stolen and used on Fansit.

What we do when a chargeback hits

Notify you by email and dashboard.
Deduct the disputed amount + fee from your wallet.
Investigate. We pull transaction records, fan account history, and any context that supports the original charge.
Contest the chargeback with the card network when there's evidence the transaction was legitimate.
If we win: the disputed amount is returned to your wallet (the fee stays deducted).
If we lose: the deduction is permanent.

We win roughly 40–60% of contested chargebacks for legitimate transactions.

Negative balances

If a chargeback exceeds your wallet balance, your wallet goes negative. The deficit is recovered from future earnings before any payouts go out.

You can't withdraw FanBucks while your balance is negative.

Abnormal chargeback rates

Fansit tracks every creator's chargeback rate (chargebacks ÷ total transactions). If your rate exceeds risk thresholds:

First sign: elevated pending hold periods.
Second sign: account moved to Caution tier (see Account Tiers).
Third sign: Restriction with potential payout suspension.
Worst case: account termination if rates remain high after warnings.

The threshold is about 2% of transaction volume — much higher and you'll get warnings.

How to reduce chargebacks

Five tactics that work:

Set clear expectations. PPV titles and previews should match what the content actually delivers. The biggest source of disputes is "the content wasn't what was advertised."
Make customer support reachable. Fans who can DM you and resolve issues don't usually escalate to chargebacks. Reply to support DMs same-day when possible.
Send clear receipts. Confirm major purchases with a DM thanking the fan and clarifying what they bought.
Watch for fraud signals. New fan with no prior activity who immediately spends $500+ — red flag. We'll often hold those transactions in pending longer, but you should also be alert.
Don't oversell. Especially during streams, don't promise content or experiences you can't deliver. Disappointed buyers chargeback.

When to contest

If a chargeback hits and you have evidence the transaction was legitimate (DM confirmation, content delivered, etc.), the system gives you a chance to submit evidence to support the contest.

What helps:

DM screenshots showing the fan acknowledging the purchase.
Timestamps showing the content was delivered.
Notes showing the content matched what was advertised.

Submit evidence within 7 days of the chargeback notification.

When you should expect chargebacks

Newer creators see fewer chargebacks. Established creators with 1,000+ subscribers usually see a small but constant baseline (1–2 per month is normal).

If you suddenly see a spike, look for the cause:

A confusing bank statement after a recent change.
A piece of PPV content with mismatched expectations.
A specific fan with multiple chargebacks (request to ban them via support).

TL;DR

Chargebacks are expensive. Reduce them by setting expectations, being reachable, and not overselling. When they happen, contest with evidence. Watch your rate.