This is the more punitive action, and I will note that a credit card company will side with you as long as you made a decent effort at canceling. I considered it when I waited 3 hours for a chat without a response, but ended up doing the PayPal way because it required less dealing with a bank in this time of Covid-19 delays.

Most companies pay about $15 per chargeback (independent of if they win or not).

Especially for low value things, even a few percent chargebacks will be really costly.

Source:. Was selling $1 physical items online... The business was profitable until a few percent of packages started going missing in the mail, and rather than contacting us, customers would just chargeback, forcing me to double the price of the service.