[JoshTriplett]

While I can understand how this would cause problems for a merchant accepting a continuous cycle of payments, why would someone doing a Kickstarter not withdraw all of the payment to a separate account before shipping any of the orders? To the best of my knowledge, Kickstarter pays out the full amount right away; they don't force you to withdraw it incrementally as you need it.

[ceejayoz]

That's not going to stop the bank from giving you a negative balance and sending you to a collections agency.

[JoshTriplett]

Sure, you're still going to have to deal with the dispute resolution process, but you get to negotiate from a position of strength (you have the money and they want it, rather than the other way around), and you're not in the red by having paid the costs to ship products without getting paid for them.

[ceejayoz]

If you think being in arrears to a bank is "a position of strength", you must have never overdrawn your account.

[X-Istence]

It depends on the amount of money you owe the bank.

Owe the bank 10 dollars, it's your problem.

Owe the bank 10 million dollars, it's their problem.

[ceejayoz]

Kickstarter's limit is $10k, so it's likely to be your problem. On top of that, bankruptcy would be a problem for most people, even if the bank suffered too.

[sp332]

It's not about who has the money, it's about who is owed money. A chargeback means that you legally owe them the money.