Porn-related transactions have a higher than average rate of chargebacks. Maybe post-nut clarity motivates people to say “wait hold on I shouldn’t have spent that money, I must’ve been hacked.” Or maybe it’s people saving face when confronted with a transaction log from their spouse or other family members. Or maybe it’s just the type of transaction that actual card fraudsters gravitate towards, so that there really is a higher percentage of unauthorized transactions.
Gambling-related merchants also have a similar problem with payment processors. For many of them, it’s just straightforward business concerns, not any kind of ethical issue in itself.
The problem with that is that, at least with PayPal, they charge a fee to the service provider (Steam, in this case) for chargebacks. And, from what I’ve heard, that fee is significantly more than the original cost.
Every credit card company charges large fees to the service provider for charge backs. It’s standard practice. This is also leads to service providers straight up perma-banning customers who initiate charge backs instead of resolving a dispute with the provider.
Porn-related transactions have a higher than average rate of chargebacks. Maybe post-nut clarity motivates people to say “wait hold on I shouldn’t have spent that money, I must’ve been hacked.” Or maybe it’s people saving face when confronted with a transaction log from their spouse or other family members. Or maybe it’s just the type of transaction that actual card fraudsters gravitate towards, so that there really is a higher percentage of unauthorized transactions.
Gambling-related merchants also have a similar problem with payment processors. For many of them, it’s just straightforward business concerns, not any kind of ethical issue in itself.
The problem with that is that, at least with PayPal, they charge a fee to the service provider (Steam, in this case) for chargebacks. And, from what I’ve heard, that fee is significantly more than the original cost.
Every credit card company charges large fees to the service provider for charge backs. It’s standard practice. This is also leads to service providers straight up perma-banning customers who initiate charge backs instead of resolving a dispute with the provider.
Chargebacks are incredibly expensive, yes.