We eat the loss and the chargeback fee, it's just a cost of business.
It's not worth it to ban the customer. 90% of them don't buy again. Of the 10% that do, it's worth it to keep their business and risk the chargebacks. Most of them get better at hiding the porn. Also if we did this we would end up banning great customers who closed their card due to actual fraud and the bank just ending charging back everything after a certain date.
There just weren't really that many trying to scam us out of DVDs. Other business factors affect your chargeback rate way more than these customers.
It's not worth it to ban the customer. 90% of them don't buy again. Of the 10% that do, it's worth it to keep their business and risk the chargebacks. Most of them get better at hiding the porn. Also if we did this we would end up banning great customers who closed their card due to actual fraud and the bank just ending charging back everything after a certain date.
There just weren't really that many trying to scam us out of DVDs. Other business factors affect your chargeback rate way more than these customers.