Re:Teddit Is Shutting Down
by charcircuit on Sunday July 16, 2023 @03:07PM
(#36750391)
>Why are chargebacks higher?
People pretend their purchases are fraud or regret their purchase later so they chargeback more frequently than other services.
>Why can't that just be accounted for in the processor's rates?
Because it's easier as a credit card processor to just drop all of your high risk clients and focus on serving the rest of your customers as best as you can. Of course that leaves a whole in the market for other credit card processors that charge more for allowing higher risk purchasing.
People pretend their purchases are fraud or regret their purchase later so they chargeback more frequently than other services.
>Why can't that just be accounted for in the processor's rates?
Because it's easier as a credit card processor to just drop all of your high risk clients and focus on serving the rest of your customers as best as you can. Of course that leaves a whole in the market for other credit card processors that charge more for allowing higher risk purchasing.