I'm using US credit cards outside of US. If I get scammed, I file a dispute and get my money back. Filing the dispute takes less than a minute. I didn't measure it but this happened like 1% to 5% of the time in last 3 years. I get scammed more because I'm a foreigner.

Anyone knows who is paying for my disputes? I was assuming that the seller is paying for it. Is that wrong?

If my bank is paying for it, eventually they'd close my account, I suppose? I'm frugal (don't spend too much) and I'm always overseas. I also don't invest using banks. So my profit-cost might be in the negative for them. I don't know tho..

  • 1
    What are you doing with your card? I use my card outside the US 100s of times each year and fraud is extremely rare. Maybe once every 3 years or so
    – Hilmar
    Dec 3, 2022 at 15:53

2 Answers 2


I assume there are two costs you are asking about:

  1. The money you got back from the seller
  2. The time and money your credit card spends resolving the matter.

The seller pays #1, if the credit card can collect from them. Maybe they can, maybe they cannot.

#2 is a cost of business for the credit card. They budget for such expenditures, so ultimately it is paid for by whoever is providing the issuer with revenue: merchants paying access fees, card holders paying interest, etc.

  • 1
    actually #2 is covered by the dispute fees. Sometimes issuers would charge a fee for unjustified disputes, and the processors most definitely charge sellers fees for justified disputes.
    – littleadv
    Dec 2, 2022 at 21:16
  • I wondered about that. I'll pretend I included that in "etc." :)
    – chepner
    Dec 2, 2022 at 21:22

I was assuming that the seller is paying for it. Is that wrong?

No, most times it would be the seller. If a seller has too many charge-backs (disputes) filed against them, their processor would drop them. In rare cases where the processor cannot charge back to the seller a dispute that they found justified by the network rules they'd have to pay it themselves. Very rarely the issuing bank would cover the costs of the dispute.

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