#berlin-chargeback
shy snow
the short version is that the card networks charge stripe for chargebacks, so stripe charges users for chargebacks
the longer version is that card networks don't want chargebacks, and one way to avoid them is to hit merchants with a fee to create an incentives for merchants to do things to avoid chargebacks (fraud checks, refund policies, customer support, etc)
final summit
Yeh but $15 for a chargeback? for a $34.99 transaction
shy snow
another element of it is that issuers / acquirers have to pay some analyst / customer support person somewhere to arbitrate the chargeback
and that typically is a fixed cost - it's as much work to arbitrate a $35 tranaction as a $350 one
final summit
But shouldn't there just be an option to refund the scammer? and settle it there
vs forcing a $15 fee on top of already loss profit from a scammer
shy snow
sure, except the bank has already gone to some amount of trouble
final summit
I don't know, doesn't feel right to know that the seller is the one that has to pay the fee, when stripe should of prevented the fraud in the first place
shy snow
for eg: a fraud case, the cardholder has noticed a transaction on their card they didn't make, they've phone their bank, some analyst paid by the bank has run this down, gotten some amount of evidence from the cardholder, etc., and then filed paperwork with stripe to reverse it
the issuer wants to be compensated for that, regardless of the outcome at that point
there is a chargeback protection product, if this is something you want to be able to ignore https://stripe.com/radar/chargeback-protection
