Somewhere along the way, many software companies got stuck believing that chargebacks are just a part of selling software online and cannot be avoided. They just choose to ignore the problem. Although it is almost impossible to entirely avoid chargebacks when selling software online, most of them can be prevented, mitigated, and disputed in the end. So, really the bigger question is how to win a chargeback.
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With one of the causes being the incapacity to achieve global SaaS compliance, chargebacks are a serious issue. Often the cost of chargeback processing fees can exceed the product's original cost. These can vary between $15-$100 per dispute. Even if the company has a 100% dispute win ratio, the real threat behind chargebacks is the negative statistics that cannot be reversed. With negative statistics, reaching the 1% threshold in chargebacks can threaten a software company by losing one of the most popular payment methods for its online store. Without payments, there would be no online marketplace for software.
In the digital age, information is power. The more a company knows about the risk associated with chargebacks, the less vulnerable it is in front of this problem.
Ioana Grigorescu is PayPro Global's Content Manager, focused on creating strategic writing pieces for SaaS, B2B, and technology companies. With a background that combines Languages and Translation Studies with Political Sciences, she's skilled in analyzing, creating, and communicating impactful content. She excels at developing content strategies, producing diverse marketing materials, and ensuring content effectiveness. Beyond her work, she enjoys exploring design with Figma.
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