What is a risk associated with transactions that depend on future delivery of goods?

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Focusing on transactions that depend on future delivery of goods, one significant risk is the lengthy chargeback periods. When goods are purchased with the expectation of future delivery, there are often extended timelines before the customer actually receives the product. This delay can lead to increased uncertainty and potential dissatisfaction on the part of the consumer.

In the event that a customer needs to dispute a charge, the chargeback period allows them to initiate this process. If the goods do not arrive on time or are not as expected, customers may choose to file chargebacks. In situations involving future delivery, the window of time for customers to decide to dispute the charge can be extended, which increases the potential for businesses to face chargebacks.

While options related to increased customer engagement, discounted pricing models, and improved service reliability could all have merits in certain contexts, they do not encapsulate the specific risk tied to the timing of delivery and the resultant implications for chargeback processes. These other factors may potentially add value or enhance customer satisfaction, but they do not directly highlight the risk of chargebacks arising from the delays associated with future delivery transactions.

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