What is a risk of merchants who rely on future deliveries?

Merchants who rely on future deliveries face the risk of long chargeback periods and potential losses due to the time lapse between the transaction and the actual delivery of goods or services. When customers make purchases for future delivery, they might experience delays, dissatisfaction, or changes in their plans, which can lead them to dispute the charge. In such cases, the chargeback process may take an extended duration, during which time the merchant could face financial liability, refund demands, and the risk of losing income from those transactions.

This situation is particularly heightened because consumers might not feel inclined to wait for a product that may not arrive on time or as expected, making it easier for them to initiate a chargeback. Therefore, the potential for long chargeback periods, paired with the resulting losses if goods are returned or funds are disputed, represents a significant risk for merchants operating in this manner.