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I would imagine all purchases to be a low dispute risk, as the merchant can simply offer refunds to all no questions asked. After all the marginal cost of goods
by ericpauley 5y ago
I would imagine all purchases to be a low dispute risk, as the merchant can simply offer refunds to all no questions asked. After all the marginal cost of goods sold for an app is probably effectively 0.
That being said, a $1 purchase through stripe likely has an effective fee higher than 30%, so this would only make sense for larger purchases.
- nexuist 5y agoThe problem is that even with a no-hassle refund process some customers will still call their credit card company and ask for a chargeback because it's a process they're familiar with and it's easier for them to do than to go through any kind of custom process you've built for them. I imagine after dealing with customer support BS enough times your goodwill is eroded and you're just going to choose the path of least resistance for yourself.
- maccard 5y ago> I would imagine all purchases to be a low dispute risk, as the merchant can simply offer refunds to all no questions asked. That only works if you offer a no questions asked refund, and even at that, that doesn't imply 0 risk. Cards get stolen and tested on low value purchases all the time; if a scammer decides to check 1000 credit cards on your app, you're going to have a very bad time.
- threeseed 5y agoNot everyone who does a chargeback is looking to get their money back. Some do it specifically because it will harm the merchant. Especially if they feel they've been wronged.