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Cutting Chargeback Costs and Expanding Internationally is Music to Spotify's Ears

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An important source of revenue for Spotify is their e-card product. E-cards allow buyers to give the gift of Spotify to others, or redeem on their own accounts. Unfortunately, recurring fraud attacks and high chargeback costs had caused Spotify to temporarily suspend e-card sales on a number of occasions. But they responded with revised fraud prevention techniques.


  • Eliminated $145,000 in monthly chargeback costs and lost revenues
  • Over 2x the number of e-cards sold, contributing $10 million to revenues
  • Facilitated international expansion to 57 countries in just 7 months
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We went from a 10% chargeback rate on e-card transactions to 0.1%-0.2%. It’s a tremendous achievement, we were amazed by the results.
Federico Pezzotti,
Head of Payment Operation

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Digital Goods and Downloads

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