And in an environment like finance, good communication of the status of the account should be the difference between an "oh okay that's fair" and a lawsuit for theft.
Collecting money for events is the archetypal high risk credit card processing business.
You get to spend all the money in advance, while the processor holds your chargeback liability that will only come due after your cash flow dries up
Every processor mentions this in their t&c. Events require special underwriting.
That's a unique situation because the event organizer (or kickstarter inventor, or travel agent, etc) needs the money now to invest in something they may not be able actually provide. That isn't dishonesty, but a question of competence plus the uncertainty of life.
Those types of businesses rely on loans. The money has to come from somewhere, and be spent before the product is delivered. A payment processor is not in the business of giving loans.
The only problem is when the merchant is dishonest. Also too common, that's really a legal and regulatory matter, because there are always ways in which sellers can break the law.
The last part has become increasingly difficult. A merchant might be honest, but if they don't have customer support and do not reply to issues, that's indistinguishable from dishonesty. For the first 20 years of having a credit card, I had to do one chargeback: an online "merchant" who was totally fraudulent. In the last 2-3 years, I've had to do about 4 chargebacks, and it's mostly otherwise-legit companies ghosting me.