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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).
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).