If you see a weird charge on your bank statement, you’ve got two options: file a chargeback or deal with something called an Early Fraud Warning (EFW). They sound similar, but they aren’t the same, and knowing which one applies could mean the difference between getting your money back or not.
Here, we break down how EFWs and chargebacks are different, how they work, when you should use them, and what to do if you get stuck.
What Is an Early Fraud Warning (EFW)?
An Early Fraud Warning, or EFW, is a type of alert sent between banks when a cardholder flags a transaction as suspicious, but before a formal chargeback is filed.
Here’s how it works:
- You call your bank and say, “I don’t recognize this transaction.”
- The bank doesn’t immediately reverse the charge.
- Instead, it sends an alert to the merchant’s bank saying, “Heads up, this customer says something’s wrong.”
The idea is to give the merchant a chance to resolve the issue before things escalate. If the merchant issues a refund quickly, it avoids a chargeback altogether.
EFWs Are Time-Sensitive
The window to act on an EFW is short—sometimes as little as 24 to 48 hours. If nothing happens during that time, the cardholder may proceed with a chargeback.
What Is a Chargeback?
A chargeback is a formal dispute where the cardholder’s bank forcibly pulls the money from the merchant’s account and returns it to the cardholder. Chargebacks are governed by card networks like Visa and Mastercard and are part of consumer protection rules.
They can happen for reasons like:
- Fraud (someone stole your card)
- Product not delivered
- Item not as described
- Unauthorized subscriptions
Unlike EFWs, chargebacks go on the merchant’s record and count toward chargeback thresholds. Too many chargebacks can get a merchant fined or blacklisted by their payment processor.
Key Differences Between EFW and Chargeback
When to Use an EFW vs a Chargeback
Use an EFW when:
- You just noticed a charge and you’re not sure what it is.
- You want to give the merchant a chance to fix it.
- It happened recently (within a few days).
Use a chargeback when:
- You tried to get a refund and the merchant won’t cooperate.
- You didn’t authorize the charge.
- You never got the product or service.
Sometimes, EFWs are filed automatically when you report potential fraud, especially if your card is flagged for replacement.
What If an EFW Doesn’t Work?
If the merchant doesn’t respond to the EFW in time or refuses to refund, you can escalate to a chargeback. But it’s not always simple.
Sometimes, the window to file a chargeback closes before you realize the EFW failed. Or the bank may say the issue was "resolved" even when you didn’t get your money back.
In these cases, services like JoinChargeback can help you fight back and reopen the dispute, especially if you feel like your case was closed unfairly.
Final Thoughts
So, how are EFWs and chargebacks different? Both are tools to fix unauthorized or disputed charges, but they serve different roles. EFWs are quick alerts designed to stop a dispute before it begins. Chargebacks are the next level: formal, forceful, and long-winded.
If you're trying to get your money back, timing is everything. Start with your bank, understand the process, and don’t let a failed EFW stop you from pushing forward with a chargeback if needed.
FAQ: EFW vs Chargeback
What happens if I ignore an EFW?
If you don’t follow up on an EFW, your bank may assume the issue is resolved and close the case. That could make it harder to file a chargeback later.
Do EFWs affect the merchant like chargebacks do?
No. EFWs don’t count against the merchant’s chargeback ratio. But they still take them seriously, especially if they want to avoid a formal dispute.
Can I skip the EFW and go straight to a chargeback?
Yes. If you’re sure the charge is unauthorized or the merchant won’t help, you can request a chargeback right away. But some banks may still try an EFW first.
How do I know if my dispute is in the EFW or chargeback stage?
Your bank should tell you. If they say they “notified the merchant” or it’s “under review,” it’s likely in the EFW stage. A chargeback usually comes with formal dispute paperwork or a case ID.
What if the merchant refunded me after an EFW, but it didn’t show up?
Sometimes banks take a few days to post the refund. If it doesn’t appear within a week, call your bank again to confirm whether the merchant actually refunded it.
Want to Prevent EFWs and Chargebacks Before They Start?
At Chargeblast, we help businesses stop fraud before it happens. With real-time alerts, dispute prevention tools, and smart fraud detection, you can avoid getting flagged by cardholders in the first place. Because once a dispute starts, whether it’s an EFW or a chargeback, it’s already costing you.
