The Financial Stability &
Consumer Choice Act
Modernizing digital payments in licensed skill-based & gaming industries. Stand with us to protect consumers, strengthen financial institutions, and end the costly cycle of friendly fraud.
The Financial Stability & Consumer Choice Act (FSCC Act) is a proposed legislative framework that has not yet been introduced as a bill in the U.S. Congress. This petition advocates for its introduction and passage.
The Problem
Current consumer protection frameworks create a “high-risk” environment for financial institutions processing transactions for licensed skill-based wagering and gaming platforms—costing an economy where the average U.S. consumer unit spends $78,535 annually (BLS Consumer Expenditure Survey, 2024) billions in lost opportunity.
Systemic Risk to Banks
Banks face disproportionately high chargeback rates when processing transactions for licensed gaming platforms. While the gaming industry average chargeback rate is 0.83% (Chargeblast, 2024)—below Mastercard’s Excessive Chargeback Program threshold of 1.5%—individual high-volume gaming operators can easily exceed this threshold, and the “high-risk” classification itself leads to banking relationships being denied or terminated regardless of individual operator performance. This creates systemic financial risk across a sector employing nearly 1.9 million U.S. workers (BLS, Feb 2026).
The Friendly Fraud Epidemic
Friendly fraud accounts for 40–80% of all e-commerce fraud losses. 72% of customers say convenience has driven them to file a chargeback claim (Chargebacks911 Cardholder Dispute Index, 2025). Nearly half of consumers admit to bypassing merchant contact entirely before filing a dispute. Even when merchants choose to contest these claims, they win approximately 45% of cases—but the net recovery rate across all chargebacks is only ~18% (Chargebacks911, 2025).
De-Banking & Market Access
State-licensed skill-based gaming operators—legally distinct from chance-based gambling under 40+ state laws and UIGEA—are frequently denied banking services due to broad “gaming” categorization. Meanwhile, over 625,000 unregulated “gray machines”—representing roughly 40% of all gaming machines in the U.S.—operate without oversight. This forces licensed operators into less regulated channels, threatening 99,529 establishments and the consumer protections they provide.
Sources: Mastercard/Ethoca (2023), Chargebacks911 Cardholder Dispute Index (2025), Chargeblast (2024), LexisNexis True Cost of Fraud Study (2025), Bureau of Labor Statistics (Feb 2026)
By The Numbers
The financial case for the Chargeback Waiver Program is overwhelming. Here's what the data shows.
Before & After: The Transformation
The Market Opportunity
The U.S. Amusement, Gambling & Recreation industry employs nearly 1.9 million workers across 99,529 establishments (BLS, Feb 2026), with sustained output growth of 9.3% (2022), 5.9% (2023), and 2.4% (2024). The average U.S. consumer unit spends $78,535 annually (BLS Consumer Expenditure Survey, 2024), with a pronounced shift toward services (+$98.5B) over goods—directly benefiting gaming and entertainment. With U.S. GDP growing at 4.4% (Q3 2025, BEA) and Pennsylvania's Leisure & Hospitality sector supporting 582,300 jobs, establishing a clear legislative framework unlocks massive economic potential while generating hundreds of millions in state tax revenue.
Sources: Bureau of Labor Statistics (Feb 2026), Bureau of Economic Analysis (Q3 2025), BLS Consumer Expenditure Survey (2024)
The Solution
The Chargeback Waiver Program: a voluntary, informed-consent model that protects all parties while preserving consumer choice.
Informed Consent
Consumers voluntarily acknowledge the nature of their transactions before completing a purchase, ensuring full transparency at every step.
Irrevocable Waiver
Once consent is given, consumers waive the right to dispute authorized transactions through chargebacks, eliminating friendly fraud at its source.
Safe Harbor for Banks
Financial institutions gain legal protection when processing these consensual transactions—zero chargeback processing, zero investigation, zero liability.
How the Waiver Program Works
A multi-layered verification and consent system designed for maximum consumer protection and bank security.
Account Creation & KYC
Consumer completes biometric verification (selfie + government-issued ID) during sign-up. Full identity validated before any transaction can occur.
Double Opt-In Consent
Multi-layered consent captured at signup AND again before each deposit. Consumer explicitly acknowledges and accepts the chargeback waiver terms.
Transaction Processing
Payment processed with full consent documentation. Financial institution protected by safe harbor provisions—no risk of chargeback disputes.
Internal Dispute Resolution
If any dispute arises, it is resolved directly between consumer and platform within 15 business days—bypassing the traditional chargeback system entirely.
Implementation Roadmap
Initial operator onboarding and compliance testing
Broader operator adoption and bank partnerships
100+ operators, $250M/month transaction volume
Choice, Not Coercion
This legislation empowers consumers with transparent choices while eliminating the abuse of chargeback systems. The current BSA definition of “financial institution” (31 U.S.C. § 5312) was written for land-based casinos with over $1M in gross gaming revenue and has not been updated for modern online skill-based platforms—creating a regulatory gray zone that leaves compliant operators in compliance uncertainty. Existing card network rules contain provisions that acknowledge alternative dispute resolution procedures—such as Mastercard’s rule permitting acquirers to reject chargebacks when an alternative dispute resolution procedure was agreed to—providing a framework that a federal safe harbor program could formalize.
Key Benefits
This legislation creates a win-win framework for every stakeholder in the digital payment ecosystem—backed by concrete, measurable outcomes.
For Financial Institutions
- Zero chargeback processing on waiver-covered transactions
- No provisional credits, no arbitration costs, no liability
- Full safe harbor protection from regulatory action
- Clear legal framework eliminates compliance uncertainty
- Restores confidence to process gaming-related payments
For Consumers
- Reliable, uninterrupted access to licensed platforms
- Biometric-verified identity protects against unauthorized use
- Transparent, double opt-in consent at every transaction
- Fast internal dispute resolution vs. 45-90 day chargeback process
- Protection from predatory or unregulated alternatives
For Regulators & the Economy
- Standardized framework reduces 625K+ gray machine problem
- 80–95% reduction in chargebacks across the payment ecosystem
- Sustained industry output growth: 9.3% (2022), 5.9% (2023), 2.4% (2024)
- PA Leisure & Hospitality sector supports 582,300 jobs statewide
- U.S. GDP growing at 4.4% (Q3 2025, BEA)—services spending up $98.5B
Sign the Petition
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