292 karma · joined December 30, 2021
- a charge back can come up to 6 months later. A loss of that is not only a loss of funds but a charge back fee
- too many charge backs could affect the merchant account with the potential of a loss of being able to run your business and this can extend to PayPal or anything merchants run charges through.
- Fees may go up like interchange fees on running credit cards if an account is deemed higher risk.
- blacklisting from visa or Mastercard or merchant accounts in general is not unheard of. Loosing access to running credit cards would be the end of many businesses.
So mom and pop shops need to be aware of fraud and ensure it is low or taken care of. You can’t just accept every order and hope for the best. Fraud does exists and when only a few percentage of users meet your list of incorrect fraud assumptions it’s easy to see why they are used at least for extra verification.
One good thing for merchants for those who accept crypto like Bitcoin is all the risk moves to the sender not the merchant. There are no charge backs - so merchants who take crypto should be able to be a bit more lenient on payments and verification.
Godaddy probably can do more and be closer to other country level registrars that more closely require some type of id or business registration to complete the order but fraudsters will still try and some will succeed in getting phishing domains created.