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by nixxle 5305 days ago
$15 dollar for every occuring charge-back nomatter what the outcome? Not thanks.
2 comments

I didn't believe that until I read it myself. It's true: https://stripe.com/help/chargebacks

If your competitor sells $1 eBooks using Stripe, there's an easy way to move him out of business: buy 10'000, then ask for a chargeback on each of them.

There's got to be a better way to do this.

Chargebacks are expensive because it's an extremely manual process, especially representments - $15 is not outrageous. Many issuers will simply not charge back small amounts because it's not worth it. If you want to commit fraud, just buy small amounts at Starbucks on a prepaid card with no balance - they generally don't auth (to give that smooth consumer experience) and will not charge back when their forced post comes in because it's not worth it for them.
I believe PayPal's chargeback fee is $20.