Overview
Stablecoins remove card-style chargebacks. Merchants should design refund models and dispute paths that balance protection and operational efficiency.
Refunds vs Chargebacks
Refunds are merchant-driven returns referencing original transactions. Chargebacks are network-driven reversals with fees and penalties. Stablecoin payments use refunds and clear receipts.
Design Patterns to Reduce Disputes
- Hosted invoices with detailed descriptions
- Delivery proof and customer confirmations
- Cooling-off periods and staged payouts
- Transparent refund windows and partial rules
Policies and Customer Support
Publish refund terms, contact channels, and turnaround expectations. Offer tracked resolution paths and document outcomes.
Monitoring and Controls
Flag repeat dispute patterns, verify addresses, and whitelist high-trust customers. Review logs and hashes to resolve cases quickly.
Conclusion
With thoughtful design and policies, stablecoin payments can materially reduce chargeback exposure while protecting customers.