What is a Chargeback?
A forced payment reversal initiated by the customer's bank — impossible with crypto.
A chargeback occurs when a customer disputes a credit card transaction, and their bank forcibly reverses the payment. Merchants lose the revenue plus pay a chargeback fee ($15-100). Crypto payments have zero chargebacks because blockchain transactions are irreversible.
The Chargeback Problem
Credit card chargebacks cost merchants $40 billion annually. Fraud-related chargebacks are growing 20% year-over-year. Industries like digital goods, gaming, and services are disproportionately affected.
Why Crypto = Zero Chargebacks
Blockchain transactions are final. Once a USDT or USDC payment is confirmed on-chain, it cannot be reversed by any bank, payment processor, or third party. This is a fundamental advantage of crypto payments.