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Shoplifter · 08-05-2003, 05:07 PM

The one percent chargeback threshold is a very serious situation and I predict it will soon be the end of many smaller webmasters.

Say you have started your site up and have been running for 3 months. In month 3 you get 2 chargebacks in which they charge back for the 3 monthly transactions and the trial. So you have 8 charged back transactions. Well you had better be up to 800 transactions a month by that point or you are non-comlpiant.

One thing about chargebacks is that they are largely about luck as much as customer service or a website quality. You can have the best site in the world but a few henpecked husbands charging back for spousal reasons will put you out of business. And then there is the issue of stolen cards...One or two stolen card episodes will put you over as well, and it will be you rather than the IPSP that take the blame for this. And because you are under the IPSP in all this you will have no voice in explaining to the bank what the real story is if you are terminated.

08-05-2003, 05:07 PM
Shoplifter Richest man in Babylon Industry Role: Join Date: Jan 2002 Location: Posts: 10,002 Posts: 5,727	The one percent chargeback threshold is a very serious situation and I predict it will soon be the end of many smaller webmasters. Say you have started your site up and have been running for 3 months. In month 3 you get 2 chargebacks in which they charge back for the 3 monthly transactions and the trial. So you have 8 charged back transactions. Well you had better be up to 800 transactions a month by that point or you are non-comlpiant. One thing about chargebacks is that they are largely about luck as much as customer service or a website quality. You can have the best site in the world but a few henpecked husbands charging back for spousal reasons will put you out of business. And then there is the issue of stolen cards...One or two stolen card episodes will put you over as well, and it will be you rather than the IPSP that take the blame for this. And because you are under the IPSP in all this you will have no voice in explaining to the bank what the real story is if you are terminated.