4 ms·
Chargebacks are used as a kind of punitive measure directed at merchants. The idea here is for merchants to figure out the only way to deal with chargebacks is
by twawaaay 4y ago
Chargebacks are used as a kind of punitive measure directed at merchants. The idea here is for merchants to figure out the only way to deal with chargebacks is to not get chargebacks at all.
For now this works because for some reason relatively few cardholders are educated enough on what are and how to use chargebacks.
I personally wouldn't be using credit card if not for the chargebacks. I am still paying off entire balance every month, but I am much happier knowing that any dispute on a transaction with a credit card is going to be so much easier than any other form of payment.
- supertrope 4y agoI worked at a company that shrugged off customers' threats to chargeback. It was seen as a way to shift customer support load to the bank! Chargebacks mostly fell into two categories: those who didn't recognize the business's name or financially unstable customers who charged back because they ran out of money at the end of the month and wanted to get some back (sometimes every month). I guess it helped it was a low risk industry selling a service that can't be resold as only dumb criminals would use stolen credit card information to pay on an account with their name on it.