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>* Transactions are final. The merchant has no risk of chargebacks. You realise that's a bad thing, right? >* Transactions are bounded. Once you walk away, th

by M2Ys4U 5y ago

>* Transactions are final. The merchant has no risk of chargebacks. You realise that's a bad thing, right? >* Transactions are bounded. Once you walk away, the merchant cannot take more money from you. Whereas with credit cards, they could store your number and charge you again at a later date, without your knowledge. And if they do that you can... issue a chargeback.

theli0nheart 5y ago
> > Transactions are final. The merchant has no risk of chargebacks. > You realise that's a bad thing, right? Frauds where people ask for payment via Venmo or Paypal for Craigslist transactions are incredibly common. Craigslist recommends using cash to avoid getting defrauded, because transactions being final is a feature for in-person transactions, and a good one at that.
mitchdoogle 5y ago
It all depends on circumstances and your position in the transaction. If you're a business, you probably want to handle customer complaints and refunds yourself, not be subject to the whims of emotional customers.
phil21 5y ago
> And if they do that you can... issue a chargeback. This is not remotely a guaranteed thing. It works until the credit card issuer says nope. Chargebacks are 100% at the pleasure of your issuing bank, they are not your choice in the end. Most consumer banks will more or less have an internal credit score where they allow you a small number before they start pushing back. Depends on how much profit you make the bank. Chargebacks against small vendors are mostly guaranteed, but once you go up against a large party the tables very quickly turn against you.
rvz 5y ago
> You realise that's a bad thing, right? I'm sure you also realise that chargebacks can be abused by these users right? The merchants can get their (PayPal, Stripe, etc) accounts locked or shutdown and their money withheld for months due to the payment processors locking the money and they always side with the bank, which they have zero context whether if the chargeback is fraudulent or not.

by M2Ys4U 5y ago

theli0nheart 5y ago

> > Transactions are final. The merchant has no risk of chargebacks. > You realise that's a bad thing, right? Frauds where people ask for payment via Venmo or Paypal for Craigslist transactions are incredibly common. Craigslist recommends using cash to avoid getting defrauded, because transactions being final is a feature for in-person transactions, and a good one at that.

mitchdoogle 5y ago

It all depends on circumstances and your position in the transaction. If you're a business, you probably want to handle customer complaints and refunds yourself, not be subject to the whims of emotional customers.

phil21 5y ago

> And if they do that you can... issue a chargeback. This is not remotely a guaranteed thing. It works until the credit card issuer says nope. Chargebacks are 100% at the pleasure of your issuing bank, they are not your choice in the end. Most consumer banks will more or less have an internal credit score where they allow you a small number before they start pushing back. Depends on how much profit you make the bank. Chargebacks against small vendors are mostly guaranteed, but once you go up against a large party the tables very quickly turn against you.

rvz 5y ago

> You realise that's a bad thing, right? I'm sure you also realise that chargebacks can be abused by these users right? The merchants can get their (PayPal, Stripe, etc) accounts locked or shutdown and their money withheld for months due to the payment processors locking the money and they always side with the bank, which they have zero context whether if the chargeback is fraudulent or not.