What exactly are chargebacks and chargeback fraud?

Is it a complaint about not receiving the product, or is it about the customer saying that he did not authorize the payment?

If I understand correctly, it is about the second one and therefore some claims that there are no real best practices to adopt in order to totally avoid it.

So what's left?

What could another chargeback-free payment option be (beside BTCs) when you're selling goods or services with a high risk (high-cost products\services)?

  • Is there any reason you're looking for a no-chargeback option?
    – Noah
    Jul 3, 2014 at 14:34
  • @Noah I edited my question, thanks for pointing out: I forgot :) | I'm selling high risk goods: think about selling diamonds (just an example: I'm not).
    – XCore
    Jul 3, 2014 at 14:36
  • If this a small business question, are you personally selling goods? Is this a one time transaction, or something that will happen again and again?
    – MrChrister
    Jul 3, 2014 at 14:51
  • @MrChrister I'm directly selling goods. It's difficult to say: someone could buy small stones multiple times, while someone could just buy one big stone once. Of course in the first case, chargeback is not really a concern.
    – XCore
    Jul 3, 2014 at 14:54
  • money.stackexchange.com/help/on-topic - I am pondering if your question is on topic here or not. Regardless of that, you might have to look into escrow services, or deal with shipping in a very specific way to eliminate fraudulent charge backs. But those are small business topics, not personal finance.
    – MrChrister
    Jul 3, 2014 at 15:06

3 Answers 3


Generally there's no ultimate protection against charge backs. Some methods are easier to charge back and some harder, and there's always the resort of going to courts.

The hardest to contest is, of course, a cash payment or wire transfer.

You need to remember that imposing unnecessary/unreasonable difficulties on your customers will drive business away. I can buy diamonds in the nearest mall with my credit card - why would I buy from you if you want cash, BTC, or any other shady way to pay? I'm pretty sure that whatever that is you're selling, anyone can buy elsewhere as well.

  • I'd like to see a comparison between the methods with all teh variants, pros, cons. - PayPal - Skrill - bank transfer - Cryptocurrency (Bitcoin is slow and expensive compared to ETH and XRP) - Cash - etcetera Also, it is very important to define the "~Product" and the eventual shipment mode/execution: it is a object or a service? wire transfer are, for my experience, the worst.You will never be able to win a dispute againsta a bank when their customer says the payment was "unauthorized" and (I'm not sure) I think is 120 days the period for claim a chargeback, not only 120 days.
    – Alex 75
    Feb 8, 2019 at 19:10

Since irreversible options offer by design no buyer protection unless you have a rock solid reputation in your niche this can be a deterrent for business. Therefore I would suggest you look into offering escrow services on top of your normal offerings for customer's ease of mind.

Now for the actual question, most cryptocurrency will work and there are payment providers that process such type of payments for you automatically in an automated web sale flow.

Outside of cash on pickup and bank transfers(that may not be feasible if talking about online sales) there is also Skrill but as with crypto, it requires an adoption curve, if the user isn't already a Skrill user it's highly unlikely they 'll make an account just to shop with you.


Bitcoin. - This is the only Payment Method, without any kind of Chargebacks, once the money is sent, it's done permanently, there is no way the Buyer can cause a reversal of any kind.

  • The question asks for an option other than BTC. And there are other cryptocurrencies which handle chargebacks the same way (i.e. no provision)
    – Ben Voigt
    Dec 20, 2018 at 20:32

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