Chargebacks are so easy because the nature of our product.
We sell digital user subscriptions to customers. People pay for this
with the credit card by submitting a form....There is NO signature
that authorises the sale thus making it difficult to verify that the
cardholder is the one buying the subscription.
No matter what logs you can produce it still doesn't fully proof
that the cardholder made the sale.....it could be another person
using his computer.
If you were to ship a tangible product to the customer you will
receive the cardholders signature upon delivery thus making it
harder for them to chargeback. At least then you have a sale slip
that contains the signature of the cardholder which could be used
as valid proof in case of a chargeback.
As long as there is no good electronic accepted id method that
will be accepted as valid in court this industry will be subject to
user induced fraud.
But I think if you would do research to the ratio between
customer induced fraud or operator/webmaster induced fraud I
would be very suprised if customer induced fraud makes up for
a big percentage of the chargeback problems in this industry.
Would be an interesting thing to get some facts and numbers on
DynaMite