Chargebacks can happen to anyone. In the case of Soulja Boy, rapper/merchant of hoverboards, fraudulent chargebacks occurred to the tune (pun intended) of about $174,440. That’s some pretty serious dough. In most cases of chargeback fraud, merchant processors typically refund the cardholder their money with little evidence of fraudulent intention from the cardholder. For merchants, this can cause some serious headaches.
Not all fraudulent transactions are intentional. However, in some cases, credit cards are legitimately stolen and used to make fraudulent purchases. It’s best to take steps to avoid becoming a victim to identity and credit card theft. We’ve written an article outlining some steps to protect yourself. It’s worth checking it out.
For merchants like Soulja Boy who sell the famed hoverboards, chargebacks can be a common occurrence. According to BuzzFeed, the issue has become so problematic, Stripe had considered suing its users to recoup funds.
Of course, if you are a merchant who finds himself in Soulja Boy’s position, it’s best to keep your cool. With the proper effort, you can defeat fraud.
I would suggest heading over to Joeseph Bernstein’s BuzzFeed article “Steal A Credit Card — Buy A Hoverboard” to read more about Soulja Boy’s unfortunate chargeback experience. It’s, without a doubt, a fantastic and informative read for those who are new to the chargeback world.