One exception is if your business accepts payments which can't be reversed
I do sometimes wonder how much global loss in economic productivity is caused by the various payment methods that allow customers to retrospectively reverse purchases or payments with a high or certain likelihood of taking their money back and possibly also costing the merchant a fee, whether or not the customer has any legitimate basis for doing so.
Even with an extremely low chargeback rate, the amount of hassle the occasional chargeback does cause to one of my little businesses is wildly disproportionate. We are generally very keen on looking after our customers and in practice we tend to refund liberally in cases where for example there seems to have been a genuine misunderstanding on the customer's part, even if legally we have no obligation to do so. Consequently, we have a generally very positive reputation, and sometimes even people who didn't find our product was right for them turn out to be good ambassadors. I would gladly decline the probably tiny number of customers who wouldn't buy our stuff without the option to make us give their money back involuntarily in exchange for the certainty we would get, and I don't think our reputation would suffer in the slightest for it.
I can only imagine how annoying this sort of issue must be at a much larger scale, like running a fashion store in the current circumstances where most sales are online, and then encountering Rita Returner who wants to buy five new dresses every month but then always returns four of them (one or two now slightly marked and not able to be sold as new) because the law says she can and there's no way to prove she caused the marks. A friend-of-a-friend apparently saw a huge cost to their business from a situation not unlike this in recent months.
I do sometimes wonder how much global loss in economic productivity is caused by the various payment methods that allow customers to retrospectively reverse purchases or payments with a high or certain likelihood of taking their money back and possibly also costing the merchant a fee, whether or not the customer has any legitimate basis for doing so.
Even with an extremely low chargeback rate, the amount of hassle the occasional chargeback does cause to one of my little businesses is wildly disproportionate. We are generally very keen on looking after our customers and in practice we tend to refund liberally in cases where for example there seems to have been a genuine misunderstanding on the customer's part, even if legally we have no obligation to do so. Consequently, we have a generally very positive reputation, and sometimes even people who didn't find our product was right for them turn out to be good ambassadors. I would gladly decline the probably tiny number of customers who wouldn't buy our stuff without the option to make us give their money back involuntarily in exchange for the certainty we would get, and I don't think our reputation would suffer in the slightest for it.
I can only imagine how annoying this sort of issue must be at a much larger scale, like running a fashion store in the current circumstances where most sales are online, and then encountering Rita Returner who wants to buy five new dresses every month but then always returns four of them (one or two now slightly marked and not able to be sold as new) because the law says she can and there's no way to prove she caused the marks. A friend-of-a-friend apparently saw a huge cost to their business from a situation not unlike this in recent months.