Custody and cash · 39 / 127 · 2 min
Chargebacks
A card payment can be reversed after the coins were credited. The firm then wants the coins back, and it can freeze the account to get them.
The card can reverse. The firm can freeze. Those are different rails.
A worked case
Someone buys coins with a card and withdraws. The card payment is disputed. The firm freezes what remains and asks for the rest. A helper in chat asks for the seed to clear the freeze. The freeze was the firm. The seed is the theft.
Two rails
The card network can pull the dollars back. The chain, if you already withdrew, does not reverse itself. The firm is left holding the reversal.
The freeze
They freeze first. The terms usually say they may. A stranger who says they can speed the review by taking your seed is the second problem.
The card is a second firm
A chargeback returns a card payment after the merchant has already delivered. In this market the merchant delivered coins, or a credit for coins. The card network does not unspend a chain. The crypto firm is left to freeze, claw back, or sue.
The freeze is the firm using the only door it has. A person in a chat who offers to lift it with your seed is not the card network.
Read it yourself
These links are the record. They are not a recommendation, and they are not instructions. A news story or a court paper can still be wrong about a detail. The check does not change because a famous name is in the story.
Apply the check
Open a question. The line is about this topic. It is not a verdict that anything is safe.
The firm, trying to recover the reversed payment.
The card network, for the reversal. The firm, for the freeze.
Either of them. A seed sent to a stranger lets the stranger do it instead.
Check yourself
Write it in your own words. The course's answer opens after that. Nothing is sent.
After this you can name both companies: the card, and the firm that credited the coins.