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
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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
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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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Dan Romero
@dwr.eth
I’m referring to consumers and legitimate uses for chargebacks
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notdevin
@notdevin.eth
Does my answer make sense or does it miss what you’re saying? Real disputes are less frequent, but will spread like wildfire and become large Accidental disputes (customer mistakes) are common and regular, by volume they’re greater than real disputes
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