is there a payment processor without the ability to open chargebacks?

[cryptounions]

3% cb rate? that's really high,i am thinking only Chinese payment processor can take it,lol.be ready to pay high processing fee too.

 

[StanSmith]

It is possible actually but only in the USA afaik so far.
If you have a US resident (needs SSN) cant be foreign owned US LLC, then there can be a debit only solution Its not known or common and most processor will say they cant do it.
This runs transactions on the debit rails, turns off visa/mc and only accepts debit cards. They can still open a dispute with the bank but the card user must provide proof for the dispute it shifts liability. You also dont have shutdowns bc there is no visa/mc shutting you down its up to your acquiring bank only. Lastly, if they liability is capped one day $50, $500 after two days, so you can withhold shipping for two days and if its under $500 they cant win the dispute im told.
Obviously yes I know who does it and will share I guess with admin sometime and see about posting it but rather not for now.

I will say if you have a physical store location you can get a POB system or a pin based debit. Anyone can get you a pin based debit. So technically you can put a cc info form on your store and process the transactions manually. You will need to get the customer PIN of course. And convince the processor that you have a need to run all cards punched instead of swipe lol.

 

[uplana]

It is possible actually but only in the USA afaik so far.

What payment processor in the USA will guarantee no chargebacks and allow their merchants to accept Visa and MasterCard ?

 

[StanSmith]

What payment processor in the USA will guarantee no chargebacks and allow their merchants to accept Visa and MasterCard ?

If you only run debit cards like a pin debit system, technically there are no chargebacks. They can only dispute with their bank. Visa/MC are not involved bc it was ran over a debit rail and not the Visa/MC system. Normally if you accept credit and debit cards all debit cards will be ran over the Visa/MC system and so Visa/MC chargeback rules apply even though it was debit.
If credit is disabled and it is ran over pin debit its a different network and Visa/MC arent involved at all. Its like using the ATM. You put your debit card into the ATM its not ran over Visa/MC and you cant charge it back. You can file a dispute but then you have to prove the card was stolen, and then somehow prove they knew your debit PIN number. Its much harder to sipute debit if at all.
They have much less time to do it too.

"Legally, the maximum liability for a debit card user is only capped at $50 if the card is reported lost within two days. If reported lost after more than two days but less than 60 days, the cap is $500. After that, there is no liability limit."
https://www.chargebackgurus.com/blo...um liability for,there is no liability limit.
Wait two days to supply the service(and ensure they haven't disputed) and if its under $500 you should win any dispute.

Edit to add "What payment processor" well any processor can set you up with a pin debit terminal for your physical location. You might be able to convince them you want a pin debit terminal for MOTO. If you have a PIN debit only terminal you can accept orders over the phone by keying in the transaction and the PIN. You can also capture the credit/PIN info online and key it in later like a virtual terminal. PIN debit transactions are much lower risk btw for the processor so they like them.

 

[uplana]

If you only run debit cards like a pin debit system, technically there are no chargebacks.

but who can use this for some online business, I guess less then 1% ?

 

[StanSmith]

but who can use this for some online business, I guess less then 1% ?

I suppose it depends what you sell.
If you sell in high risk niches such as sarms, peptides, nutra, kratom, pharma, casino, etc you can do good volume with just ecehcks and apps like cashapp, skrill, bank transfers, etc
Adding debit only cards is a cherry on top imo.

If youre selling normal things like clothing, dropshipping random goods, then no it likely wont work out as well. Most people do have a debit card however.

IPTV would be a good fit for debit only I think. Customers know they are buying something they shouldnt be, so they are more understanding of payment options. Youre better off losing half your sales volume and rebuilding it I imagine then having to find a new cc processor every other month though.

I am in the process of planning out and getting some merchant accounts. A few of them will only be echeck and APM, no cards at all, and I expect them to have good volume of 100k/month. Keep visa/mc totally out of the equation and kleep the accounts strong.

 

[uplana]

better off losing half your sales volume and rebuilding it I imagine then having to find a new cc processor every other month though.

I agree, if your business isn't legit or "allowed" business you can only depend on such alternative payment methods. But most often such businesses don't survive long term anyway.

 

[StanSmith]

I agree, if your business isn't legit or "allowed" business you can only depend on such alternative payment methods. But most often such businesses don't survive long term anyway.

Well it depends. Some of these businesses can make enough money in a year or two where they serve their purpose and you can move on to other things or live comfortably.
Take a look at Discount offers on meds always running. > usatab.com
They use a call center and run cards to a virtual terminal. Im sure they just rotate accounts and add new ones as they burn through them. A company like theta might set up 10 accounts and keep making them as they lose them. No reason you couldnt do that for years.
Running a debit only terminal might make it last longer as chargeback work differently and Visa is out of the picture.
Running alternative payments too you can do a large volume. But again depends on the industry.