GuidePayments

What about payment refunds and chargebacks?

Why chargeback-prone payment methods are risky in P2P trading and how to protect yourself.

N

Nina Patel

Head of Compliance

October 12, 2024
3 min read
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Chargebacks are one of the most common vectors for buyer scams in P2P trading. A chargeback is when a buyer initiates a reversal of a fiat payment after receiving crypto — effectively getting both the crypto and the fiat back.

Payment methods with significant chargeback risk include: PayPal "Goods & Services", credit and debit card transfers, and some gift card platforms. Many sellers on Exchanger explicitly exclude these methods.

If you want to use PayPal, always use "Friends & Family" — this removes buyer protection and signals you are not attempting a chargeback. Be aware that sellers may still decline PayPal for high-value trades.

Bank transfers (SEPA, SWIFT, Faster Payments) are essentially chargeback-free — banks can sometimes reverse transfers but only in narrow cases of clear bank error, not "buyer's remorse".

As a seller, never release crypto until you have logged into your bank or e-wallet and confirmed the credit. Do not rely solely on a screenshot, which can be faked. Seeing the funds in your account is the only safe signal.

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