[wl]

> Dissatisfied customers who don't find refuge in a refund policy/process

It's dangerous to label such things as fraud. Chargebacks are a consumer protection mechanism of last resort as well as a remedy for unauthorized charges. If a merchant doesn't deliver what they promised and doesn't issue the appropriate refund, the merchant is the one engaging in fraud.

[crysin]

Chargebacks are a mechanism that can definitely be abused and in those cases would be fraud. I don't see that as dangerous at all. Heck, in posts on these forums people brag about using chargebacks to cancel services because they didn't want to call or follow the guidelines set by the merchant to cancel an account. Whether they're in the right or not that's most certainly bordering abuse of the system.

[Meekro]

Those merchants don't always have clean hands, either. Lots of services where you can sign up with one click, but canceling requires a lengthy phone call during which they pressure you to stay. And the call has to be during business hours, hope your boss doesn't mind!

Imagine how much worse it'd be if the dispute process didn't exist. "Oops, our only cancellation department employee retired last year and we forgot to replace him!"

[eeeeeeeeeeeee]

I see both sides here, but maybe this is where merchants need to enact stricter rules.

Like services that will gladly let you signup online but then require you call a phone number, with very long wait times and only during certain hours, to cancel. And then be harassed about a cheaper offer while you try to cancel.

I have been a merchant and dealt with erroneous chargebacks, but I have zero sympathy for companies that know exactly what they’re doing — trying to fatigue or confuse the customer into not canceling.

[epa]

Chargeback fraud is a large issue in the US and not enough is being done by card issuers because it is the consumers who make money for card issuers by spending. There is incentive to please them, as all costs get passed to merchants.

[tjoff]

Making it hard to cancel a service is a blatant abuse of the system.

[hn_throwaway_99]

As any seller on eBay can attest, it's definitely possible to deliver exactly what you promise and still have the customer demand a refund or chargeback.

[eeeeeeeeeeeee]

I disagree. Chargebacks are a feedback loop. If you’re taking care of your customers and being transparent about how much and when you charge them, surprise, you won’t have bad chargebacks rates.

If you try to blur that grey area and tilt towards deception (“maybe if we don’t tell them when it auto-renews, our churn will decrease”) then you deserve every single chargeback you get.

[NedIsakoff]

My sister-in-law works in a fashion store. They have a 14 day return policy assuming same condition. You be surprised how many people buy a dress, cut all the tags, wear it once to an event, and try to return it.