The verdict in three sentences
Unlike mobile money, card payments carry a true chargeback: the cardholder can dispute unilaterally, and you must defend or eat the loss plus a R150-R250 fee. The real battle is won in prevention (3DS, limits, scoring) rather than reactive handling, because breaching the 1% chargeback ratio can push you into costly monitoring programmes. An equipped merchant keeps losses below 0.5% of turnover, whereas a passive one can exceed 2 to 3%.
Prevention vs reactive: the dispute-type playbook
Every dispute has an optimal treatment. Blending prevention with fast reaction is the key.
| Dispute type | Common cause | Recommended action | Resolution time |
|---|---|---|---|
| Duplicate charge | Timeout + retry | Auto reversal within 24h | T+1 |
| Item not received | Failed delivery | Refund or reship | T+2 to T+5 |
| Fraud (stolen card) | Phishing/theft | Block + evidence pack | 30 to 90 days |
| Wrong amount | Manual entry | Partial adjustment | T+1 to T+2 |
| Product dissatisfaction | Unmet expectation | Partial refund/gesture | T+2 to T+5 |
| Friendly fraud (3DS) | Buyer's remorse | Representment with proof | 30 to 90 days |
On cards, 3D Secure shifts liability to the issuing bank: it is your single best anti-fraud protection.
Fee and loss exposure
The cost of a dispute is not only the refunded amount: there are fixed fees and a risk of acquirer sanction.
| Item (2026 order of magnitude) | Card (South Africa) | Mobile money |
|---|---|---|
| Chargeback/dispute fee | R150 - R250 (~90,000-150,000 FCFA) | 0 - 500 FCFA |
| Fraud alert threshold | Chargeback ratio 1% max | Wallet policy |
| Refund delay | T+3 to T+10 | T+1 to T+7 |
| Representment win rate | 20 to 40% | N/A |
| Avg loss per unmanaged dispute | Amount + fee + penalty | Amount + reputation |
| Penalty if ratio breached | Monitoring programme (surcharge) | Possible suspension |
Key takeaway: breaching a 1% chargeback ratio can enrol you in a costly monitoring programme, or even lose you acquiring.
Prevention ROI
| Prevention lever | Setup cost | Loss reduction |
|---|---|---|
| Per-transaction/day limits | Low (config) | 15 - 25% |
| Stronger OTP verification | Low | 20 - 30% |
| Systematic 3D Secure | Medium | 40 - 60% |
| Anti-fraud rules (scoring) | Medium to high | 30 - 50% |
| Clear refund SLA | Low | Reputation + fewer disputes |
Mini case study
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Thandi runs an online electronics store in Johannesburg with R650,000 in monthly card sales. Her dispute/fraud rate hit 2.4%, about R15,600 in monthly losses, dangerously close to the 1% ratio. By enforcing per-transaction limits, stronger OTP on high baskets and 3D Secure on all cards, she cuts losses to 0.7%, about R4,550. Saving: R11,050/month, over R130,000/year, for a one-off configuration of roughly R9,000. Payback in under one month, and she stays clear of the monitoring threshold.
FAQ
Does mobile money have a true chargeback like cards?
No. There is no unilateral dispute mechanism: reversal depends on the wallet policy and settles in T+1 to T+7. You keep more control but must be proactive on legitimate refunds.
How much does a card chargeback cost in 2026?
In South Africa a chargeback costs roughly R150 to R250 in fees on top of the disputed amount. Beyond a 1% ratio, the acquirer can impose a surcharged monitoring programme.
Is 3D Secure worth the added checkout friction?
Yes for risky baskets. It shifts fraud liability to the bank and cuts losses by 40 to 60%. You can trigger it intelligently (above a threshold) to limit abandonment.
What win rate should you expect on representment?
With solid evidence (proof of delivery, logs, IP, customer comms), win rates sit between 20 and 40%. Without a structured pack, they fall below 10%.
What refund SLA should you display?
A T+1 to T+5 SLA depending on dispute type is realistic and reassuring. Displaying it clearly reduces the number of complaints and bad reviews.
Let's talk about your project. We build fraud prevention, 3D Secure and refund workflows into your store. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
