Fraud-related chargebacks are a hidden tax on modern business. Every time a customer disputes a transaction, merchants lose not just the sale, but often the goods, the card processing fee, and hours of staff time. Factor in acquirer penalties and brand damage, and the cost can be more than double the original transaction value.
In the UK alone, unauthorised financial fraud across cards, remote banking, and cheques reached £1.2 billion in 2023 (UK Finance). Authorised Push Payment (APP) scams added another £459.7 million in losses, with more than 230,000 victims affected. Globally, chargebacks now cost merchants an average of 2.5 times the disputed transaction once you include admin and lost stock.
And the pressure has intensified in 2025. With Visa’s new Acquirer Monitoring Program (VAMP) live since April, all fraud and non-fraud disputes are now counted together. That means every chargeback — no matter how it’s resolved — chips away at a merchant’s dispute ratio. Cross the stricter thresholds, and you face fines, higher processing fees, or even the loss of your merchant account.
For merchants who still treat chargebacks as “part of doing business,” this is a dangerous mindset. But our client Gala Tent shows there’s another way.
The Problem: Fraud That Wouldn’t Stop
Back in the early 2010s, Gala Tent — one of the UK’s leading suppliers of marquees and gazebos — was being hit with fraudulent transactions on an almost daily basis. The business even found itself circulating on online forums as an “easy target” for fraudsters.
The problem wasn’t just the volume of fraud. It was the lack of tools to prove customer identity during card-not-present sales. Telephone payments were unsecured. Online payments lacked strong authentication. Every fraudulent chargeback cost money, time, and confidence.
Company CEO Jason Mace tasked the IT team with finding a product that could authenticate remote payments and shift liability away from the merchant. But nothing existed.
So they built it.
The Solution: Building SOTpay
In 2015, Gala Tent implemented SOTpay, a cloud-based, PCI DSS-compliant, pay-by-link solution that secures every card-not-present transaction. Instead of agents handling sensitive card data, customers complete payments on their own device via a secure link, with 3D Secure authentication built in.
The results were immediate. Fraud losses stopped overnight. Chargeback disputes disappeared. Liability shifted away from Gala Tent and onto the card issuer.
This year, Gala Tent celebrates a milestone very few merchants can claim:
10 years without a single fraud-related chargeback.
Jason Mace reflects:
“Back in 2014 we were losing thousands to fraudulent card transactions. We needed a way to prove customer identity and protect our business — but nothing existed. SOTpay changed everything. Since 2015, we haven’t had a single fraud-related chargeback. That’s a decade of peace of mind, and proof that the right technology makes fraud prevention possible.”
Why Fraudulent Chargebacks Hurt More in 2025
Fraud has always been costly, but today the stakes are higher:
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Stricter thresholds: Visa VAMP now counts all disputes against merchants, whether fraudulent or not. Exceed thresholds and you risk penalties.
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Higher operational costs: The average chargeback costs merchants 2.5× the transaction value once admin and fees are included.
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Sector risk: High-risk verticals like travel, digital goods, and subscription services are already seeing dispute ratios as high as 2–3%, well above Visa’s acceptable thresholds.
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Reputation damage: Excessive chargebacks don’t just hurt your acquirer relationship — they erode customer trust, especially if disputes are publicised.
In short, tolerating chargebacks isn’t just expensive — it can kill growth.
Why SOTpay Works
Our client’s story proves that fraud-related chargebacks aren’t inevitable. Businesses can stop them with the right tools. SOTpay makes that possible through:
1. 3D Secure Authentication
Every transaction is authenticated by the customer’s own bank, shifting liability away from the merchant.
2. Omnichannel Payment Links
Take secure payments over the phone, via email, SMS, WhatsApp, live chat, or social media — all PCI DSS compliant.
3. PCI DSS Scope Reduction
Because sensitive card data never enters your systems, compliance becomes simpler, cheaper, and faster.
4. Fraudulent Chargeback Guarantee
SOTpay provides a 100% guarantee against fraudulent chargebacks — peace of mind for every merchant.
5. Customer Trust at Checkout
Branded, secure payment journeys reassure customers at the point of purchase, reducing abandonment and boosting conversions.
Fraud Prevention as Competitive Advantage
Fraud prevention isn’t just about plugging leaks. Done right, it creates advantages:
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Higher conversion rates: Secure but seamless journeys build trust.
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Better acquirer relationships: Low dispute ratios keep you compliant and in good standing.
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Scalable growth: Expand into higher-risk sectors without fear of chargebacks.
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Lower admin burden: Teams spend less time fighting disputes and more time driving revenue.
PCI DSS v4.0.1, now in force, demands stronger security controls. Businesses using SOTpay are already ahead of the curve, proving compliance while cutting fraud losses to zero.
Fraud-Free Growth IS Possible
Fraud-related chargebacks are one of the most pressing risks for merchants in 2025. With Visa VAMP now enforced and compliance thresholds tightening, businesses cannot afford to absorb disputes as part of the game.
Gala Tent’s 10-year fraud-free record is proof that with the right solution, merchants can stop fraud, protect revenue, and grow with confidence.
SOTpay makes that possible.
👉 Book a free demo today and discover how to eliminate fraudulent chargebacks for good.
