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I wonder how much money they actually lose on a chargeback though? Chargebacks are debited from the merchants account (i.e. the merchant wears the cost of the f
by ryan-allen 15y ago
I wonder how much money they actually lose on a chargeback though? Chargebacks are debited from the merchants account (i.e. the merchant wears the cost of the fraud). So despite the origin of the fraud, the merchant wears it.
This is at least true with digital goods that can't be returned, I don't know what the policy is in regards to physical goods and PayPal.
- dangrossman 15y agoI think it's fair to say the answer is "a lot". Especially in cases of fraud, there's not going to be any money in the merchant's PayPal account to debit. They were gone long before the chargeback came through, and they aren't going to leave a legitimate bank or credit card linked to the account to go after either. PayPal takes those losses.
- pbreit 15y agoPayPal losses are somewhere in the teens of basis points. Not all chargebacks are passed on to merchants.