Quote:
Originally posted by Kimmykim
Does the cost incurred in fighting it outweigh the admin fee for absorbing it?
If not, you don't even want to think about it.
|
Exactly.
Now VIP-ID used to fight chargebacks, and they won every one of them.
They would file a lawsuit, subpeona the IP logs from the customers ISP, the works.
It was profitable for them because they sued for the cost of the chargeback + $3000 for "damaging their reputation".
You can only do this if you're processing through your own merchant account though. If you're processing through an IPSP then the charges went through their merchant account and its their reputation at stake, not yours.