If a payment is reversed, fine. The buyer got all their money back.
But adding a $25 "administrative fee" or a $10,000 fine seems like a frivolous act, given how little effort is spent investigating chargebacks.
But adding a $25 "administrative fee" or a $10,000 fine seems like a frivolous act, given how little effort is spent investigating chargebacks.
Accounts with 1-2% chargeback rate are incredibly costly. Stripe is potentially having to pay 1-2% of that account's entire processing volume in losses.
Chargebacks don't magically get paid. Somebody is left holding the bill.