Tayyab - d/acc
@tayyab
There is a going to be a big business to be built on fraud risk for merchants and stablecoins.
7 replies
8 recasts
43 reactions
Dan Romero
@dwr.eth
There’s no fraud risk?
1 reply
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4 reactions
Tayyab - d/acc
@tayyab
Let’s say you order something on a website, idk a tshirt. You pay in stablecoins, you get underwear and the company refuses to answer your support emails. You can’t really ask for a refund. CC companies at least give you the ability to claim. Same is true for subscriptions that over charge you despite canceling.
2 replies
0 recast
0 reaction
Dan Romero
@dwr.eth
1. How often do you chargeback online merchants? I suspect $ fraud > $ legitimate chargebacks. Probably by 100x. So if your eliminate fraud then you get lower prices. 2. You can’t charge a wallet without approval
2 replies
0 recast
2 reactions
notdevin
@notdevin.eth
Not sure I’m following your answer but accidentally chargebacks 2x+ > real fraud
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Dan Romero
@dwr.eth
My point is the amount of value lost to fraud (including accidental chargebacks) is significantly more than consumers protected with chargebacks against bad merchants.
1 reply
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notdevin
@notdevin.eth
Incorrect according to all our data with merchants. More money is lost to valid purchases where the consumer has a misunderstanding of where the purchase came from The way I say it is accidental disputes are greater than fraud. Fraud is a risk because it’s viral/contagious. If 1 gets through I promise you’re going to see 100x more attempts in short period of time so you better catch that first one
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notdevin
@notdevin.eth
Wait, I just reread your comment and you said bad merchants, so I’m confused again. Bad merchants we haven’t seen at all but that’s because we’d fire them as a customer before it got to that. I don’t see bad merchants as an issue for anyone but the processors
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