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If you do the math
$40 per month
100 signups
$4000 per month
1 chargeback extra $100
That's $100/$4000=2.5%
so on average everyone would agree
before they had to stay around 2% chargeback
and now they have to be at 1%.
On average then we have to pay
for 1 chargeback per 100 if we
were around 2% pace before, so
$100 per $4000 means 2.5% loss of
income over previous months, so
doesn't this almost seem insignificant
if you look at it this way? I mean
couldn't you just then take
$40/mo. multiply by 2.5% and
get $41. Charge the surfer $41 per month instead
and you will make up that first $100 per surfer you didn't
plan on. Basically adding $1 to the monthly dues
wipes away the chargebacks. Another way
to look at this is Banks have overdraft fees
let's say of $25 and if fraud is high and they have
to pay on stolen cards and they are higher than expected
then overdrafts to the customers goes up to $26 or $27
whatever they have to do.
I guess the way I see it is if people had to stay around 2.5%
and they remained at 2% and after this ruling with no program changes
they still are at 2% then they are 1% over what Visa allows, meaning
they paid for 1 chargeback fee $100 they didn't pay before, that's
that's 2.5% of the $4000 generated. Actually many go over 1 month for recurring
so that would make it less than 2.5% much less. The only reason I can see
it hurting someone is if they have just a ton of chargebacks.
Percentage wise though, unless I did the math wrong just seems like you add
$1 onto the monthly dues.
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