Report post

How do chargebacks affect crypto exchanges?

Even worse, crypto exchanges have thin profit margins, so chargebacks heavily affect their bottom line. Chargeback costs can easily represent 10-15 percent of an exchange’s net profits. The volatility of cryptocurrencies makes crypto chargebacks different from regular chargebacks.

Do crypto exchanges incur chargeback costs?

Unfortunately, exchanges often incur chargeback-related costs whether they lose or win chargebacks. Even worse, crypto exchanges have thin profit margins, so chargebacks heavily affect their bottom line. Chargeback costs can easily represent 10-15 percent of an exchange’s net profits.

Is chargeback fraud a big problem for crypto exchanges?

Chargeback fraud is increasingly becoming a major headache for crypto exchanges. It has the potential to cause knock-on problems for many other kinds of digital merchants. That might sound counterintuitive. Protection against payment fraud should, in theory, be a major selling point for digital currencies.

The World's Leading Crypto Trading Platform

Get my welcome gifts