There’s the one thing online retailers hate the most. Nope, these aren’t bad reviews and one-star ratings. What can throw even a stable retailer out of balance (and drive a struggling one out of business) are the chargebacks.
Chargebacks are used to dispute a card transaction and secure a refund for the purchase. A chargeback voids a card transaction, withdrawing funds that were previously deposited into the merchant’s bank account and applying credit to the consumer’s card statement. In cases when a credit card is stolen, or some kind of a fraud is taking place, chargebacks are a customer protection tool. However, it comes at a price: the merchants, against whom chargebacks are initiated, face exorbitant fines.
To make matters worse, some shoppers initiate chargebacks for no reason, simply instead of asking the retailer for a refund. This is especially true for online purchases. Rather than contacting the business first, the consumer goes over the merchant’s head and asks the bank to forcibly remove funds from the business’s bank account. The true reasons for this may be anything from delayed shipment to cumbersome return policies or simply a strike of ‘buyer’s remorse’ after an impulse purchase.
Whatever their true reasons are, chargebacks always come with hefty fines from the credit card networks. These fees often go up to the point when a small legitimate business, not a scam, is no longer able to sell its products online and has to shut down.
But what if there was a way to facilitate everyday payments while protecting merchants and buyers alike? It’s coming: the PumaPay blockchain-based PullPayment protocol leverages the advantages of blockchain and the best of the traditional payment systems.
Making it easy to integrate crypto payments into everyday life, the PumaPay team has made it its mission to change the face of the modern financial system. These days, the boiling cryptocurrency market seems to have it all: the capitalization, the liquidity and the buzz. It’s missing the one key thing: the usability and applicability to our day-to-day lives. PumaPay is changing that.
Our innovative protocol makes it possible:
- For merchants, to plug-in various billing solutions to enable acceptance of cryptocurrencies directly, replacing credit card companies and other billing processors.
- To provide customers with a comprehensive and flexible billing solution, addressing all common billing practices, including recurring payments, pay-per-use, etc, as well as providing flexible and immediate refunds.
- To eliminate the risks of fraud, chargebacks and associated fines.
- To avoid the whopping middlemen transaction fees ranging from ~3% to as high as ~15%.
One of the major flaws of the modern financial system is its imbalance. There’s always one side who benefits from a transaction more than the other. Most of the times, it’s the banks who ultimately win and the merchants who lose. PumaPay is changing this scenario by designing the modern decentralized payments system, which will protect the merchants and buyers. With it, chargebacks and associated fines will become a thing of the past while buyers will be more protected than ever.
Are you a merchant? Contact us to find out how you can become an early adopter of the PumaPay Protocol, get rewarded yourself and reward your customers.
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