The volatility of cryptocurrencies makes crypto chargebacks different from regular chargebacks.
Say you have $10 today, tomorrow, itโll still be worth $10 since inflation usually doesnโt have a huge impact on fiat currency in such short periods.
On the other hand, the price of Bitcoin can rise and fall significantly within hours. A 10% price fluctuation translates into a huge loss or profit if the amount of Bitcoin held is large.
If a crypto user purchases cryptocurrency and its value drops immediately, they might file a dispute citing unauthorized charges to recoup their money.ย
Another difference is when transactions fail on the merchantโs end. Since many merchants accept crypto payments, thereโs an influx of spoofing sites responsible for users losing their crypto coins. With no legal framework to bring these sites to book, defrauded crypto users often file disputes against their exchanges.