Why are refunds important in stablecoin payments?
Anyone who has used traditional payment systems will likely be familiar with refunds and chargebacks. If a purchase goes wrong, like receiving damaged items or not receiving the product at all, the payer can file a complaint with the seller to recover their funds. This process of refunds builds trust between payers and sellers, ensuring secure transactions for both sides.
However, stablecoin transactions differ significantly. Unlike credit cards or PayPal, stablecoin payments are generally irreversible. Once sent, the payment is final, with no standard way to dispute or reverse it if issues arise, which can make payers wary of using stablecoins for daily purchases.
This highlights the importance of refunds in the stablecoin ecosystem. Just as payers rely on protections with traditional payment methods, stablecoin transactions need comparable systems to inspire confidence.
Without options to dispute or reverse