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Why are chargebacks higher? Why can't that just be accounted for in the processor's rates?

• charcircuit 3y ago
  >Why are chargebacks higher? People pretend their purchases are fraud or regret their purchase later so they chargeback more frequently than other services. >Why can't that just be accounted for in the processor's rates? Because it's easier as a credit card processor to just drop all of your high risk clients and focus on serving the rest of your customers as best as you can. Of course that leaves a whole in the market for other credit card processors that charge more for allowing higher risk purchasing.