> Those ramifications for merchants include losses that can be up to double the original transaction amount and increase a merchant’s chargeback ratio, which can impact their business and their bottom line.
I wish it were only double.
On a $50 digtal purchase, Stripe will charge you $1.75 in transaction fees but losing a dispute costs you the $1.75 in addition to a +$15 dispute fee that Stripe charges. Even if you can prove that the customer used your product with tons of usage logs and you even have a log of emails where the customer is asking questions that can only be asked if they used your product chances are you'll lose the dispute because most card vendors want to keep customers happy even if it means screwing a small business.
Note that other card processors don't charge the $15 fee. Stripe is a bit different as they are set up as the merchant (rather than the business) so chargebacks hurt them more than the standard merchant / card processor arrangement.
Fully agree with your final sentence though, some card processors rule against the merchant regardless of evidence supplied. It makes the whole process pointless. It's actually simpler to take a customer to small claims court than defend a chargeback, and at least the court will look at the evidence. Such a waste of resources, sadly.
> Those ramifications for merchants include losses that can be up to double the original transaction amount and increase a merchant’s chargeback ratio, which can impact their business and their bottom line.
I wish it were only double.
On a $50 digtal purchase, Stripe will charge you $1.75 in transaction fees but losing a dispute costs you the $1.75 in addition to a +$15 dispute fee that Stripe charges. Even if you can prove that the customer used your product with tons of usage logs and you even have a log of emails where the customer is asking questions that can only be asked if they used your product chances are you'll lose the dispute because most card vendors want to keep customers happy even if it means screwing a small business.