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Comment by Raed667 | Hacker News Reader

How can a user dispute a transaction if they used 3DSecure?

A dispute is not only for transactions you didn't perform, it is also for situations like not getting the purchased product or similar. So 3DSecure will significantly decrease fraud, not other disputes.

But fraud are the problematic ones, the normal disputes are not as costly

My experience is that disputes are 100% from Americans who are encouraged by banks to "just do a dispute" anytime they are dissatisfied with anything. And in 100% of these cases it is customers who forgot to cancel or just didn't need the service as much, not really any actual dissatisfaction. Most fraud is stopped by Stripe and not really a big issue, in some cases we do a manual check and it is obvious fraud (no account activity, info not matching, fake data entry etc) and we just refund the charge before any dispute is made.

On the other hand, the existence of a consumer-leaning disputes resolution system, while pretty unfair to merchants in some situations, is probably a big accelerator for e-commerce in general.

I'm much more likely to enter my card number somewhere online knowing that I'll be made whole if something doesn't work out than knowing I'll have to fight for my money back, submit evidence I might not have etc.

Just like with fraud [1], and for similar reasons, the optimal number of successful "false disputes" in a payments and commerce system is probably non-zero: Hopefully, for every dishonest/egregious dispute, merchants see dozens of customers that would otherwise not dare to do business with an unknown/new merchant.

[1] https://www.bitsaboutmoney.com/archive/optimal-amount-of-fra...

The system you talk about is called PAYPAL.

Paypal is able to step in BETWEEEN - bevore the customer is able to start a stupid and complicated CHARGEBACK at his bank. Very often you loose a paypal case. But: That means only the CHARGE(money) goes back, but the bank can not take a 35$ fee for chargeback too.

You understand?

I am selling 99 cent downloads. On Paypal I loose nothing (99 Cent goes back) On stupid systems like stripe, where they do not handle any customer-communication - I loose 20 Euros + 99 Cent. Complete desaster.

I will add a 5 Cent extra fee to stripe payments in the future to handle that high chargeback fee. That will work into paypals hands.

They go to their bank, they say: I have not done that.

And their bank wants to have their customer with them - so they steal the money from the merchant. Thats what they are allowed to do.

Think about it: a) The customers bank is the ONLY judge, they can say: Merchant, you lost the dispute. b) The bank wants to do something in the favour of THEIR customer, why should be bank decide in the favour of a NON-CUSTOMER (the unknown merchant)

This system is complete bogus, nonsense and just stupid.

There is around 0,1% customers around who are just a...holes and try to get back some money. If they know how the system works, they do it. For example: If you loose your credit card you can go to the bank and say: All payments before date XY are not mine. There might be 1 illegal payment, but they can say: Everything since November was fraud. Bank will believe them.

I have "online customers" who did that, and I did not even get their contact details to sue them.

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