4 ms·

As a consumer I totally love chargebacks. Very easy to deal with fraudulent vendors and discourage shady business practices. That said merchants definitely ha

As a consumer I totally love chargebacks. Very easy to deal with fraudulent vendors and discourage shady business practices. That said merchants definitely hate that because it’s lose-lose for them even if they win (mandatory $25-$40 fee they pay regardless)

Trias11 8y ago
That said - merchants can retaliate back to consumers by banning them or reducing their ratings especially in industries where merchant provides essential services. Consumer can of course re-retaliate back to merchant via social media hell. So, on a final note, it's better to try to resolve things in a friendly manner, unless there is a clear fraud on one side.
- chrischen 8y ago
  Blacklisting only works if you’re a big company, and in these cases the game is stacked against the consumer... the only recourse would be class action. Social media hell is only really effective if you are notable. Otherwise the most damage you really do is simply not being a net promoter. Resolving in a friendly manner and designing the user experience around easy customer service should be the standard. Anything less and really the merchant is committing fraud. The reasons why I hate credit cards both as a consumer and a merchant are: 1) legacy tech that improves at a snail’s pace. They literally profit off of fraud, because fraud liability generally falls on merchants but they make money off of increased transactions (due to less friction). 2) they stopped innovating and a clear sign of that is the heavy push towards loyalty points in order to retain users. Not to mention anticompetitive practices barring merchants on passing on credit card fees (for which they have a 6+ billion dollar class action over). 3) opaque processes over disputes and chargebacks and long 45+ day feedback times 4) they helped cause financial crisis by overextending credit
chrischen 8y ago
I think it’s actually $15, and Stripe actually pays this if you win. But my point is that merchants should love PayPal for this, and consumers don’t realize it’s chargebacks that are > PayPal claims when it comes to consumer friendliness. Though even paypal claims are easily won by consumers if you’re willing to commit light fraud/perjury.

Trias11 8y ago

That said - merchants can retaliate back to consumers by banning them or reducing their ratings especially in industries where merchant provides essential services. Consumer can of course re-retaliate back to merchant via social media hell. So, on a final note, it's better to try to resolve things in a friendly manner, unless there is a clear fraud on one side.

chrischen 8y ago
Blacklisting only works if you’re a big company, and in these cases the game is stacked against the consumer... the only recourse would be class action. Social media hell is only really effective if you are notable. Otherwise the most damage you really do is simply not being a net promoter. Resolving in a friendly manner and designing the user experience around easy customer service should be the standard. Anything less and really the merchant is committing fraud. The reasons why I hate credit cards both as a consumer and a merchant are: 1) legacy tech that improves at a snail’s pace. They literally profit off of fraud, because fraud liability generally falls on merchants but they make money off of increased transactions (due to less friction). 2) they stopped innovating and a clear sign of that is the heavy push towards loyalty points in order to retain users. Not to mention anticompetitive practices barring merchants on passing on credit card fees (for which they have a 6+ billion dollar class action over). 3) opaque processes over disputes and chargebacks and long 45+ day feedback times 4) they helped cause financial crisis by overextending credit

chrischen 8y ago

I think it’s actually $15, and Stripe actually pays this if you win. But my point is that merchants should love PayPal for this, and consumers don’t realize it’s chargebacks that are > PayPal claims when it comes to consumer friendliness. Though even paypal claims are easily won by consumers if you’re willing to commit light fraud/perjury.