PayPal/Braintree's new chargeback policy forces merchants to accept fraud <$1000
2 days ago
- #payment-processing
- #merchant-services
- #chargebacks
- Chargebacks are claims initiated by customers with their bank against a charge.
- Disputes challenge the legitimacy of a transaction and are synonymous with chargebacks and pre-arbitration.
- Pre-arbitration occurs when a customer challenges a chargeback ruling in the merchant's favor.
- Retrievals are requests for more information about a charge and do not involve money movement or fees.
- The chargeback process involves notification, merchant response, bank review, and a ruling.
- Fund handling during chargebacks depends on the banking partner's policies.
- Merchants are responsible for managing chargebacks; payment processors are not liable.
- Chargeback fees vary by merchant account type and process stage.
- Responding to retrievals can help reduce chargebacks by providing customers with necessary information.
- Pre-arbitrations under $1,000 will be auto-accepted for US flat-rate merchants starting August 27th, 2025.