Thread: Chargebacks & Payment Processors

Do the different payment processors have varying chargeback protection for merchants? I hear complaints about PayPal's policies, but are the other processors any better? If so, which one do you like best?

You hear complaints about PayPal because, though their policies and service are less than ideal, the truth is, is that they're pretty much the king of the online payment processing world. Even if the other processors are "better," PayPal is so embedded in sites that require payments that it's got sort of a seniority basis for survival right now.

Yes, every payment processor have different policies. And PayPal is worst amongst them. The best payment processor I find till now is Moneybookers as a buyer and Liberty Reserve as a Seller.

Lucky--good point about exposure bias. I agree that for the moment, PayPal will reign, regardless of quality.

Sahil--do many sites carry Moneybookers or Liberty Reserve? I never heard of them before joining this forum.

Rachel - I have seen few sites using Moneybookers and Liberty Reserve but majority of people use PayPal.

It is a pity that PayPal have such a stranglehold on the payment processor market. I am sure that this will end one day, just look at the way other industries have had to become competitive when the market opened up.