It goes without saying that the chargebacks practice plays an essential role in the e-commerce industry of the 21st century. Generally speaking, it is considered to be an integral part of any financial activities that involve cards payments processing. There is, however, an opinion circulating among the merchants, which doubts the chargebacks’ ability to operate on the same level as it used to a few decades back.

The e-commerce market is changing too fast, making the policies developed a couple of decades or even years ago unsuitable for the industry we have today. The main cause of merchants’ headache in relation to the reversed payments is the so-called “friendly fraud” and a huge damage it entails.

No one denies the fact that chargebacks system has been working perfectly for quite a long period of time, and it still does work fine to some extent. It is a great safety pillow for the card owners, whenever they are faced with a merchant’s failure to both implement a transaction and refund the customer. However, one needs to understand the huge difference between “refunds” and “chargebacks”, as the lack of this understanding results into nearly 80% of all chargebacks procedures being carried out in a wrong way, which, in turn, entails enormous fines imposed by the banks, total loss of any profit made from original transaction and even the risk of a credit card issuer’s decision to stop processing merchant’s payments.


As for today, there is not much merchants can do to protect themselves. Almost nothing, to put it bluntly, except for trying to challenge the claim, which, as the practice shows, is usually quite pointless, as the card issues are taking the customer’s side in the vast majority of such cases. Not to mention a depressing fact that all disputes of this kind take a great deal of time, efforts and nerve cells, making the whole process an absolute nightmare. There are, however, some good news too: there is a list of steps that can be taken by the merchants to avoid, or at least minimize the risks of fraudulent chargebacks. The top precaution tip is considering the use of digital currencies along with the fiat ones.


The chargebacks are simply not possible in transactions with cryptocurrencies. Even the authorities are not able to cancel digital coins transaction after it has been carried out. Once the payment is made, it is irreversible. It does not increase the risks of fraud - no one is able to steal crypto-assets or hack digital currencies account, as the security system is way more powerful than the bank account’s one - private keys, 12 words passwords, high-tech system of coding, 2-factor authentication, permanently changing digital coin’s address etc. Needless to say, BUYEX always pays extra attention to the verification of each potential user, so that every customer of ours is 100% protected and safe.


Whenever a crypto-transaction actually needs to be cancelled, there is always a refund request option. For the reasons stated above, and many others, the digital currencies popularity keeps growing. Thousands of major companies are already using a crypto-payments option as an alternative to traditional fiat currencies transactions. Furthermore, the last decade has shown that the cryptocurrency market is clearly moving to the stage of ruling the whole financial world. Accepting digital currencies as a standard payment tool seems to be only a matter of time now.