Sorry for the bad experience Adam and thank you for sharing the story with us. As you have already known now that if you are thinking about accepting credit card payment, then you should really research on how credit card payment works. The bottom line is the credit card payment is designed to protect the cardholders, not the merchants, period. The chargeback you mentioned is designed so that the merchant must do their best to provide the cardholder with best and honest customer service, that is why merchants are willing to do refund or replacement to avoid chargebacks, because whenever a customer disputes a transaction, the credit card companies usually favor the customer, and most of the time, the merchant will lose and get chargebacks. If a company got too many chargebacks, they would not be able to accept credit card payment.

Therefore, as the merchant, you must provide good customer service so they are satisfied and will not dispute the transaction.