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Looks like you have just discovered chargebacks, something that just about every merchant discovers at some point. What to do? Some options to reduce your frau
by flibble 14y ago
Looks like you have just discovered chargebacks, something that just about every merchant discovers at some point.
What to do? Some options to reduce your fraud are
- outsource the problem by using an indemnified payments system (a payment processor who do their own fraud checks and don't pass on any chargebacks to you). Pros: easy. Cons: expensive and lots of valid payments will be refused.
- Use an e-wallet that usually has few/no chargebacks, eg Skrill & Neteller. Pros. Easy, not too expensive. Cons: more difficult for people to make payments as they need to create an account with the e-wallet first.
- Use services to help with your fraud detection. Eg. Iovation. Pros: you can keep it easy for your customers to make payments. Cons. a lot of work to implement (relatively speaking).
- Use bitcoin, eg bitcoin247.com. Pros. no chargebacks ever. Cons. about 0.00001% of your customers use Bitcoin.
Edit: I forgot to add:
- require 3D Secure / Verified by Visa payments. This removes the chargeback liability from the merchant in most cases and shifts it to the card owners bank. Pros. much fewer chargebacks. Customers can still deposit directly on your site using their card (apart from the 3D redirect). Cons: entering 3DS details another barrier to making payments so will reduce payments. Plus I'm not sure of the penetration of 3DS cards in the US.
- antiterra 14y agoGittip's professed concern is with ethics (and possibly sustainability), not losing money from chargebacks. The author realizes he has stolen money in his bank account, and that bothers him.
- AUmrysh 14y agoI'll take it off his hands for him if it makes him feel better.
- whit537 14y agoSure, what's your Gittip? :^P
- jerguismi 14y agoI'm pretty sure that their concern is also not needing to do the dirty legwork related to these cases. The time they need to deal with these problems is away from productive development time.
- mpclark 14y agoDon't worry, it won't be there long.
- jerguismi 14y agoBitcoin would also enable payouts - globally. Payouts limited to US limits the possibilities of gittip.com. And yeah, you could also kiss goodbye to chargeback, fraud etc problems. These are not a problem in a "hard" currency like bitcoin.
- whit537 14y agoWould you like to implement it? https://github.com/whit537/www.gittip.com/issues/14 https://github.com/whit537/www.gittip.com/issues/14
- jerguismi 14y agoWell, I'm pretty busy with my current bitcoin projects, so not possible at least in the near future. There are others working on similar projects, see fundhub.org
- whit537 14y agoWould love to have you involved. The owner of FundHub kindly offered the domain to Gittip when we were thinking of changing the name a while back: https://github.com/whit537/www.gittip.com/issues/138 https://github.com/whit537/www.gittip.com/issues/138