Glossary · Running the business
Chargeback
- Also called
- dispute
- chargeback ratio
- friendly fraud
What it means
In a prop firm, chargebacks usually follow a failed evaluation, a denied payout or confusion about what was bought. The trader disputes the charge with their bank, the firm loses the funds and pays a fee, and can respond with evidence through its processor.
Card networks run monitoring programs that flag merchants whose dispute or fraud levels exceed thresholds, and acquirers often set tighter limits of their own. Repeated breaches lead to fines, reserves or account closure.
Winning a dispute depends on evidence: the terms the trader accepted at checkout, the rules page as it stood that day, the account's trading history and the breach log.
Related terms
Read these next.
High-risk merchant account
Payment processor
Rolling reserve
Rules page
Challenge fee
On your website
Where this shows up on a prop firm site.
Trust center
Prop Firm Launch Cost Calculator
Prop Firm Payment Processing Fees (2026)
Forex Payment Gateways for Prop Firms (2026)
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