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Chargebacks are a huge pain in the ass and everyone involved hates doing them. The chargeback fees are supposed to be a disincentive to curb the behavior. It’s mostly automated now, but there’s a whole “accusation/response/appeal” process that businesses need to actively participate in or risk just getting money clawed back Everytime a chargeback happens, regardless of reason. This causes friction between merchants and payment processors that sometimes leads to one dropping the other. Being in a business where chargebacks happen a lot requires a commensurate amount of work. They suck. (Yes, I’ve worked in this realm. Even when it’s all automated and works well, it still sucks).
Why would that bother them? They charge vendors for chargebacks.
Chargebacks are a huge pain in the ass and everyone involved hates doing them. The chargeback fees are supposed to be a disincentive to curb the behavior. It’s mostly automated now, but there’s a whole “accusation/response/appeal” process that businesses need to actively participate in or risk just getting money clawed back Everytime a chargeback happens, regardless of reason. This causes friction between merchants and payment processors that sometimes leads to one dropping the other. Being in a business where chargebacks happen a lot requires a commensurate amount of work. They suck. (Yes, I’ve worked in this realm. Even when it’s all automated and works well, it still sucks).